In today’s market there are so many buyers considering purchasing a Bank Owned Property. We want to be honest with you from the beginning. If anyone tells you that buying a bank owned property is easy or quick they are lying! Bank owned properties can represent substantial savings over their conventional sale cousins, but they often come with many surprises too.
Are Bank Owned Properties for you?
Timing – If you want to close quickly, Bank Owned Properties are not for you. Purchasing BOP can take up to six months. If you have found a bargain and can afford to wait then purchasing a banked owned property is a great choice! Some lenders have dedicated staff handling the sale of homes on their books; meaning that when you make an offer you get some form of personal service and consideration of your offer, others use a computer program which will only consider offers within strict parameters. Getting decisions to be made on offers submitted can take many days, similarly with any questions you might have about the home.
Repairs – Most Bank Owned Properties are in need of repair work. Often minor but on occasions major, mostly due to being left empty for some time while in the banks possession.
A home inspection is one of the most important components of a purchase involving a bank owned home as it will highlight what repairs need doing, if any. If you are someone who likes to fix up a home, then a bank owned property, while saving your thousands over a conventional sale can also offer you the opportunity to repair, modify, renovate and put your own mark on. They might not be for you if you want a move in ready home.
Purchasing a bank owned property is a specialized part of the real estate industry and requires expert knowledge and experience. When you hire a REALTOR® make sure you ask them for records of the number of distressed sales they have handled (meaning those that often involve bank owned properties) and ask them for real timelines that they have experienced with closings as well as potential issues they have run into which might give you a chance to prepare for a similar situation just in case it happens to you.
Also, look for agents that have the CDPE designation, this stands for Certified Distressed Property Expert and means that they have undergone specialized training in the area of short sales and bank owned homes and should know the best way to help you if you are looking at distressed sales.
In short, a Bank Owned property can be a good investment if you are prepared to be patient, have the right expert by your side to help navigate you through the process and are prepared to spend money on bringing the home up to a livable condition again.
Contact us today if you are a buyer looking for help in purchasing a bank owned property.