If you’re house hunting in Charlotte and you see bank-owned property (aka REO), you might think you’ve found a bargain. But think again, REOs aren’t always priced low.
Banks want to recover their losses. When an REO hits the market, it’s going to be listed at full market value. That means the price tag will look like any other home in the neighborhood. Banks want top dollar, and they often invest in repairs or cosmetic upgrades before listing the property. Bottom line is, you’re not getting that discount off the top. If you want a deal, you may have to wait.
I’ll give you the 3-step plan to help get a discount:
- Watch the listing date: If the property has been sitting for 60–90 days, the bank may be more open to price reductions.
- Track price drops: Banks often reduce the price incrementally if a home isn’t selling.
- Negotiate strategically: Once the price starts to dip, that’s your cue to make an offer. There’s more room for negotiation when the property has lingered on the market.
REOs can be great buys, but only if you’re patient and strategic.