How to Look for Repo Houses

Repossessed houses can equal a great deal for a buyer; the trick is finding one. Real estate agents may be slow to advertise a home as repossessed. Often, lenders are worried that a repossessed home will be offered at too low a price. With a little detective work, repossessed houses can still be found following these steps:

Things You'll Need

• Local newspaper
• Computer
• Internet access

Instructions

1. Search local newspapers for auctions and estate sales. Be aware that these houses are often sold 'as is' and might not allow a walk through or showing.

2. Repossessed homes may be listed as REO, "real estate owned" or as a distress sale. Contact the real estate agent and ask the history of the property. Be up front and ask if it is a repossessed home. Often agents don't reveal this tidbit until a buyer is ready to negotiate.

3. Search house listings for houses that have a pending offer but are still accepting bids. This is a frequent indicator of a repossessed home.

4. Find a real estate agent that has experience in finding foreclosed homes and enlist their help.

Tips & Warnings

• Before trying online sites that advertise repossessed homes, contact the Better Business Bureau to confirm their track record. Look for hidden fees when searching.

References

• "The Complete Guide to Buying Repossessed Property Bargains"; Catherine Dawson and Elaine Dawson; 2008
• "Keys to Buying Foreclosed and Bargain Homes"; Jack P. Friedman, Jack C. Harris, Skip Stearns;2008

Resources

• Better Business Bureau