Research REO before buying

Q: With so many homes on the market these days owned by banks, are these real estate-owned homes really a good deal or not.

If you buy one of these homes, are there usually hidden costs or hassles? What kind of problems will we have to resolve before we can move in? -- Jayne C., Las Vegas

A: As you suggest, bank-owned homes are playing a huge role in the local and national housing markets.

Statistics from the Greater Las Vegas Association of Realtors show that there are now about 28,000 homes, condos and townhomes on the market. And that's not counting new homes being sold by builders. We're currently selling more than 3,100 of those properties each month.

Of those, GLVAR finds that at least two of every three homes being sold today are owned by banks.

Many of these REO homes are being listed at discounted prices. So, they're attractive to buyers looking for a bargain. But, like most products being offered at a discount, you need to be careful.

Before you begin this process, hire a Realtor with experience in this area. Be cautious when buying bank-owned homes. From fines to repairs, you may find that additional costs make it less of a bargain.

For more information, visit lasvegasrealtor.com.

Patty Kelley is the president of the Greater Las Vegas Association of Realtors and has worked in the real estate industry for more than 30 years. GLVAR has nearly 14,500 members. To ask Kelley a question, e-mail her at ask@glvar.org. For more information, visit lasvegasrealtor.com.

Patty Kelley

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