Bank owned homes or properties are often referred to as REOs. Or “real estate owned” by the lender or bank. These can provide a great opportunity for the home purchaser but this is not always the case. These homes are normally worth looking into but only the experienced investor or one with a qualified Realtor such as Wendy Morris Realty should seriously consider purchasing one.
There are times when banks sell these homes at a lower than market value rate. They will normally have an experienced Realtor or Broker give them a Broker Price Opinion on the price. One of the considerations the bank takes into account is the number of the properties in their inventory. If the number is high then the prices will often come down. If the number is low, the lender may or may not even negotiate.
Normally the lender will make all repairs required by law and full disclosure of any known defects. However, a full inspection of any home is definitely suggested. Empty homes often develop issues not immediately noticeable to even a trained eye. A professional will use a checklist and take up to 3 or 4 hours examining a property and are much cheaper than making a bad call and purchasing a nightmare. Always have a professional Realtor, Inspector with a good reputation and appraiser on call for your protection.
Not all Bank Owned Properties are on the Multiple Listing Service used by Realtors. This is also the same source that Zillow and many other popular sites use exclusively for data. Many homes are available through a network of local Realtors and sites available to Realtors that never show up on the more popular sites mentioned above. Often a local bank has a relationship with Real Estate Companies who have proven to have qualified buyers and the best deals are found there. These deals come early in the process of foreclosure, or shortly before or after client eviction. Have a title search performed and approval on hand can not only expedite a purchase but make a low bid more attractive. There are techniques and secrets to any trade, purchasing a bank owned home for sale is no different. The best part of that is you can have an experienced Realtor with the right connections assist you. While the decisions are all still yours, extra knowledge is power to fuel a great decision.
Patience is key. Always be cautious when making an offer, always be patient when awaiting approval by the lender. Normally the larger banks will have entire departments which handle only bank owned homes for sale. Normally they will have timeframes, policies and safety checks and balances in place to protect them legally and financially. This inherently causes delays in the process. Where as a local bank may literally get you an answer in just a few days.
If you are seriously considering a bank owned home contact us. We have decades of experience and building contacts in the local area. Many of us at Wendy Morris Realty have priced homes for banks and even purchased bank owned homes and foreclosures ourselves. We look forward to assisting you in the purchasing of any bank owned home or investment property.