You may have encountered these terms if you are in the marketplace to buy or sell a home. ?These are terms which are used to describe different types of sales. ?Some mean the same thing and others are misleading. ?Below you will find the definitions of each:
REO ? This is a bank owned home. ?The previous owners have lost their home through foreclosure and now the bank owns the property. ?These can be great properties to buy but you need to be aware that the bank has never lived in the property nor do they know of any issues that may not be apparent to an untrained eye. ?Be sure the have a thorough inspection by a trustworthy inspector. ?I recommend Buyers Protection Group. ?They offer home inspection and home warranty services.
Foreclosure ? This is the same as above. ?The two terms are used interchangeably.
Short Sale ? This is a home that is currently worth less than the owners owe the bank. ?The sale will be a short pay to the lender and thus has to be approved by the lender. ?The term short sale maybe misleading and is a little bit funny when you think of how long a typical ?short sale? takes!! ?In a short sale, you may not have as much negotiating power as you would with a standard sale as the lender is already taking quite a reduction in what he is owed and may not want to give you any concessions. ?Typically, asking for closing costs will be approved but the lender will not approve any repairs or termite work to be done. ?Occasionally, you can request and be approved for more concessions then normal so go ahead and request them.
Standard Sale -?This is a sale where the owner has sufficient equity to sell the home and pay all fees and hopefully make a nice profit. ?These are typically the easiest transactions in terms of complexity but you also have more emotions on both sides to work with.
FSBO ? This is a sale where the home is sold For Sale By Owner ? or FSBO. ?You may have a realtor on your side working for you but the owner has decided that he or she will go it alone and not pay a realtor to represent them. ?These transactions are very tricky and I highly recommend having a realtor on your side to make sure you are handling the deal appropriately.
I hope that these definitions will be of use to you in your home hunt. ?Have an amazing day!
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Source: http://heathershomesoc.com/reo-foreclosure-short-sale-standard-sale-fsbo/
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