Real estate property listings are properties ready to be purchased. Investors may need to know a few terms found on these listings to better understand the type of property they are purchasing. For sale by owner properties and Realtor properties may be listed separately. Bank owned and foreclosure listings are usually listed separately from other properties being sold. Understanding these terms is important in any search for residential or commercial properties throughout the country.
For sale by owner (FSBO)For sale by owner (FSBO) properties are those sold by the owner, without the aid of a real estate agent. The properties may include single family and multifamily properties, condominiums, mobile homes, land and commercial properties.
RealtorNot all real estate agents are Realtors. When browsing through real estate property listings, individuals may find mention of Realtors or Realtor properties. A Realtor is a real estate agent who is a member of the National Association of Realtors, a professional association that holds the agent to a higher level of practice.
ForeclosureSome property listings will list foreclosure properties separately from traditional for sale properties. A foreclosure is a repossession by the lender due to a defaulted loan.
Bank owned propertyBank owned properties, often called REO properties, are those owned by a bank due to foreclosure. When homeowners default on their loans, the foreclosure process begins. After taking ownership, the lender sells the properties.
Preforeclosure saleA preforeclosure sale is a property for sale by a homeowner who is falling behind in the mortgage. The property is sold and the proceeds are used to pay the mortgage. In some situations, the sale price is not enough to cover all outstanding debt, but the lender forgives the remaining debt to stop the costly foreclosure process.
U.S. Department of Housing and Urban Development to get a better understanding of a preforeclosure sale.