Tips for Purchasing a Bank-Owned Home
You’ve been ready to move into a new home for some time now but you haven’t been able to find anything good. Either the homes are in a bad neighborhood, they’re too expensive, they’re not up to code, or you just don’t trust the sellers and realtor. These grievances are nothing new and are a part of what makes finding a home a headache. But, have you considered looking into bank owned homes? These homes are homes that the bank foreclosed and is trying to sell. They are available at different price points, usually sell for lower-than-market prices, and often sell quickly. If you are looking into buying a bank owned home, we have some tips for you below.
Inspect the Property
Most bank owned homes are sold “as-is,” so you definitely want to inspect the property. These homes can come with loads of problems including incomplete to no maintenance, substandard conditions, damage from water or fire, and much more. Be sure to thoroughly inspect a home and bring a contractor who can point out specific issues that aren’t common knowledge to the average buyer. This will help you decide if the house is worth the asking price.
Search the Title
When you locate a home you’re interested in be sure to check the title. The title will let you know of any liens or outstanding taxes on the home. It’d be unfortunate for you to purchase a home and then have to take responsibility for someone else’s financial carelessness. Banks should clear the title of a foreclosed home before they put it on the market, but it’s still wise for you to check yourself and avoid unfortunate surprises.
Have as much Cash as Possible
Because many bank owned homes are sold for great values, buyers will be making competitive bids against other buyers. If you want the bidding advantage, try to have as much liquid cash as possible on hand. Banks love to sell homes to cash buyers because there is less risk associated with cash purchases. This means that the buyer with the most cash to offer on the house will most likely be the one to win the bid.
The rule for any negation when making a purchase is to bid lower than you desired price and let the buyer talk you up to the actual price you’re willing to pay. This is the same for purchasing a bank-owned home. Though these homes are already offered at lower prices, it’s still wise to bid low and hopefully reach deal. Be careful make too low of a bid: remember that there are others bidding too and the higher bidder usually wins.
Following these tips will help you get into a new home quickly without a hitch. If you’re interested in a foreclosed home, check your local bank owned home listings and find your dream house today!