A real estate-owned (REO) property is a foreclosed home that failed to sell at auction and is owned by the lender. You can search for REO listings on your own, but a better option is to hire a buyer’s agent who specializes in REO properties. A buyer’s agent represents you but is usually paid by the seller. Once you’ve found a property you like, consider all the costs and get an appraisal to see what it’s worth. You may be able to negotiate hard with the bank, which should be eager to get the property off its books, especially after the home has been on the market for 30 days.