Bank-owned homes may be enticing for some buyers. While the number of bank-owned properties has decreased in recent years, there are still opportunities out there to purchase one of these homes.
Buying a bank-owned home can get complicated. So, here are four things you should consider if you and your family decide to take this route.
Get an Inspection
A foreclosed home, despite how it may appear, should be thoroughly inspected like any other home.
More than half of homeowners agree that their home inspection saved them money. It’s a no brainer — especially with a riskier transaction for a home that could have been damaged before it was foreclosed on.
A foreclosed/bank-owned property may continue to decline in value, so it’s best not to rush into it with the expectation of reselling it quickly for profit, or immediately winning back some equity. After the deal closes, it may take some time before reaping the benefits.
Keep All Options on the Table
Bank-owned homes, generally speaking, also have lower price tags. This is great for the buyer — but it’s OK to open up the search.
Why? Traditional for-sale-by-owner homes may have motivated sellers, too, minus the baggage. Buyers may find a bank-owned property has liens against it or it requires extensive repairs. The seller of a traditional listing may be open to crediting the buyer for repairs and being flexible with the home’s price. Because of this, it’s best to keep all options on the table when house hunting.
Find a Broker
You will want to find a real estate broker with experience dealing with a bank-owned home. Banks will traditionally look for a handful of brokers to handle their real-estate-owned homes.
If you’re in the market for one of these properties, be sure to contact us with any questions.