reo propertiesREO properties are a dime a dozen on the market right now, and some are priced about that way, too. If you want to get a great deal on a home, buying REO properties is a good strategy. They are priced below market, typically, because banks just want them off their balance sheets. They are an asset no bank wants to hold for long, so they will sell them for less than appraised value just to get rid of the home.

When you look at REO properties, tell your Realtor if you want a fixer upper for rock bottom prices. Many times people who can't afford their homes will let their homes fall into a state of disrepair, and if the maintenance issues are simply cosmetic, you could get a fantastic price on a home that you could fix up over time. These are the best buys among all the REO properties. If the home meets legal standards for livability, buying one in need of paint or flooring is certain to be the best buy on the block. With a little time and expense, you can fix up that REO property, and resell it when the market comes back for a hefty profit.