Property Valuation
An Oklahoma REO (real estate owned) property — one acquired by a bank through foreclosure — will likely be:
AAutomatically priced at above-market value to recover losses
BPriced at or below market value; banks want to sell REOs to remove non-performing assets, and conditions, as-is sales, and limited warranties can make them less desirable✓ Correct
CMaintained in perfect condition by the bank before listing
DHeld by the bank indefinitely until full mortgage recovery
Explanation
Banks are motivated to sell REO properties quickly to remove non-performing assets from their books. REOs are typically sold in as-is condition with limited disclosures and warranties, often at a discount to market value to compensate buyers for unknowns and condition risk.
People Also Study
Related Oklahoma Questions
- An Oklahoma seller is in a divorce and wants to sell quickly. Their agent suggests pricing the home at a discount. A neighboring property owner complains this will hurt neighborhood values. From a fair housing perspective:Fair Housing
- An Oklahoma commercial property produces annual NOI of $96,000. If similar properties sell at a 7.5% cap rate, what is the estimated value?Real Estate Math
- An Oklahoma borrower who has defaulted on their mortgage may avoid foreclosure through a short sale, which means:Finance
- An Oklahoma appraisal performed using the 'as-is' market value standard reflects:Property Valuation
- An appraiser determines a subject property's value using the gross rent multiplier (GRM). The property rents for $1,800/month and comparable properties sell for 120 times monthly rent. The estimated value is:Property Valuation
- A recently sold comparable property is 200 square feet larger than the subject property. If the market indicates a value of $75 per square foot, what adjustment should the appraiser make to the comparable?Property Valuation
- An Oklahoma property is assessed at 11% of its fair market value of $240,000. The mill rate is 85 mills. What are the annual property taxes?Real Estate Math
- Under Oklahoma law, a broker who manages their own properties is:Oklahoma License Law
Key Terms to Know
Comparable Sales (Comps)
Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.
AppraisalA professional estimate of a property's market value prepared by a licensed or certified appraiser.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
Short SaleA sale of real property where the sale proceeds are less than the outstanding mortgage balance, requiring lender approval.
Math Concepts
Study This Topic
Practice More Oklahoma Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Oklahoma Quiz →