You see them in almost every community, and advertised everywhere. They are….Foreclosures….
There is no doubt that these bank owned properties can save home buyers a great deal of money, and a great way for investors to build their portfolio. These homes are sold typically much lower than other comparable in the neighborhood which attracts a lot of attention.
As an Agent who has plenty of experience of navigating the route from getting a bank owned property offer accepted, all the way to closing which sometimes is much easier said than done, here are some good point to keep in mind if these type of homes are in your radar.
Almost every bank owned home is sold “As-Is”, meaning what you see when you tour the home is exactly how you are getting it. If it doesn’t have a kitchen counter, bathroom wall, or a really bad floor, it will be that way when you get the keys. Pay very close attention to the small and cosmetic details when you view it to make sure you understand what you are getting into. I always recommend bringing a note pad to the showings of these so you can take plenty of notes, because numerous cosmetics add up quickly when you start looking at cost of repairs.
SHOULD I DO A HOME INSPECTION?
YYYYYYEEEESSSSSSSS!!!!!. Although it is completely up to the purchaser and not required, it is highly beneficial to have a home inspection completed. A home inspector’s job is to provide a very detailed report of major items of the home to include electrical, plumbing, roofing, and much more. This will help determine the condition of the home, and in some cases, assist in deciding if this is the home for you. Be careful when submitting an offer for a property that you review very carefully the inspection clauses of your contract as time is of the essence with the banks, and miss a deadline could cost you in the long run.
HOW AM I PAYING FOR THIS HOUSE
Before you have your agent submit your offer, please have your pre-approval letter ready to go. Speak with your lender ahead and time and get qualified first. These days, you cannot submit an offer without a pre-approval letter, but you especially do not want to find that “perfect deal”, and then you have to wait to get qualified and possibly missing out on getting your offer submitted at all due to someone else getting their offer in first.
If you are paying cash, the bank will require you to provide proof of funds for that amount. This can be a bank statement, or documentation from your financial institution stating you have the money to purchase this house. Oh yeah, don’t be surprised if they ask for it during the period of moving towards closing.
These are just a few tips on buying a bank-owned home and if you have any questions, just ask!!!!