Bank Owned Homes For Sale
There are many differences between a traditional home purchase through the current homeowner and the often tedious task of buying a bank owned home. This information should be denoted on the paperwork and/or by the realtor you are working with at the time of the initial home visit, and you will be able to determine fair market value against the price being offered by the bank. Though the buyer or investor will often find that the bank’s pricing is very fair and is negotiable, there are times when you will want to pass on bank owned homes due to disrepair or an inflated price.
Banks will usually always offer their own contract to prospective buyers or bidders, and this is standard practice even when you have prepared an offer contract on your end. Be sure that you read this bank contract thoroughly and ask questions of an attorney, your realtor, and the bank should you hit any snags. A property that is foreclosed or bank owned is not always the best deal available to you, especially is there are conditions that you can’t live with. Your counter offers and queries are bound to take much longer with a bank owned property than with a traditional real estate purchase as well, so bringing your patience into the deal with you is a great idea.
You will find that most bank owned homes for sale are offered with an “as is” clause, and this is the bank’s way of telling you that they foresee no issues with the home, perhaps aside from slight repairs, and that they are not willing to pay for or initiate any repairs on the home. This clause does not always remain in effect, however, as many banks will take care of major issues which might hold up a loan or closing on the property. Your best bet is to be completely thorough upon your inspection, and maybe even hire an inspector to go through the property with you.
No matter the season, you will want to check both the air conditioning system if there is one, and the heating system. Electricity should be up to code in all areas of the building and premises, so this will be a great place to spend some extra time. Plumbing and structure are also very important. If there are issues with the property that might cause your mortgage company or bank to stall or deny the purchase, the bank holding the purchase property will often take care of things to a satisfactory manner.
As mentioned, the bidding and negotiation processes can take quite a bit longer with the bank owned home than with the standard type of property purchase. It is not unheard of for the bank in possession to take weeks before rebutting your initial bid, and from here the back and forth can take up to six months. Be sure that the bank owned home you are interested in is worth this type of lengthy process before going forth.
