Buying a bank owned home is a viable option for today's home owners, but it doesn't always guarantee that you will get a great deal.
Most buyers in today's real estate market want to get a great deal on a home. After all, prices are at the lowest point in years and interest rates are at historic lows as well. Buying a bank owned home is being portrayed by the media as the best and only way to get a great deal on a home. So much has been written in newspapers and reported by other media about the abundance of bank owned homes throughout the country that the mere mention of the term "bank owned" will perk up the ears of many of today's buyers.
Buyers read about someone getting a "steal" on a home somewhere in California, for example, and assume that all banks throughout the country are just giving away houses for pennies on the dollar, and that's not necessarily the case.
The market is different in every area of the country, and every scenario is different as well. While it may be true that some buyers are getting unbelievable deals, that doesn't meant that all bank owned homes are deals. It doesn't even mean that buying a bank owned home is right for every buyer.
In our personal market of Cleveland, there are some luxury developments where homes used to sell for $750,000, and are now being sold for $550,000. While some of these are really great homes and may turn out to be good deals for the buyer, there are numerous risks and pitfalls to buying any bank owned home, especially one that is high priced.
For starters, many of these homes have been sitting vacant for a long time and have been severely neglected. They often need a lot of work, which means an investment of money and time to the buyer. If you don't have experience fixing up houses, the expenses can add up very quickly, especially on a large home where it costs more to replace items such as a roof, furnace, or interior fixtures. Many buyers end up running out of money before being able to fix up their home.
Also, you don't always know what you're getting when buying a bank owned home. There are no property disclosures on a bank owned transaction. So even though you have an opportunity to have an inspection, you still don't get a history from the prior owners. Some buyers are uncomfortable with this situation.
Buying a bank owned home may be a better idea for a seasoned investor, or someone who has purchased a home before. We highly recommend that first time home buyers think twice before jumping into buying a bank owned home.
There are a lot of great deals to be had in every market, and many of them are not bank owned homes. While buying a bank owned home may be a great investment for some, it isn't for everyone. If you're looking to buy a home, speak with a qualified real estate professional in your area. We have sold many bank owned homes and the right ones really are great buys. However, a buyer needs to make sure they do their homework so they are properly prepared and know what they are getting into.
For specific information on luxury developments in the Cleveland area where there are numerous foreclosed properties, please click the following:
http://www.clevelandhomeexperts.com/channels/regional_localism/topics/thornbury
Most buyers in today's real estate market want to get a great deal on a home. After all, prices are at the lowest point in years and interest rates are at historic lows as well. Buying a bank owned home is being portrayed by the media as the best and only way to get a great deal on a home. So much has been written in newspapers and reported by other media about the abundance of bank owned homes throughout the country that the mere mention of the term "bank owned" will perk up the ears of many of today's buyers.
Buyers read about someone getting a "steal" on a home somewhere in California, for example, and assume that all banks throughout the country are just giving away houses for pennies on the dollar, and that's not necessarily the case.
The market is different in every area of the country, and every scenario is different as well. While it may be true that some buyers are getting unbelievable deals, that doesn't meant that all bank owned homes are deals. It doesn't even mean that buying a bank owned home is right for every buyer.
In our personal market of Cleveland, there are some luxury developments where homes used to sell for $750,000, and are now being sold for $550,000. While some of these are really great homes and may turn out to be good deals for the buyer, there are numerous risks and pitfalls to buying any bank owned home, especially one that is high priced.
For starters, many of these homes have been sitting vacant for a long time and have been severely neglected. They often need a lot of work, which means an investment of money and time to the buyer. If you don't have experience fixing up houses, the expenses can add up very quickly, especially on a large home where it costs more to replace items such as a roof, furnace, or interior fixtures. Many buyers end up running out of money before being able to fix up their home.
Also, you don't always know what you're getting when buying a bank owned home. There are no property disclosures on a bank owned transaction. So even though you have an opportunity to have an inspection, you still don't get a history from the prior owners. Some buyers are uncomfortable with this situation.
Buying a bank owned home may be a better idea for a seasoned investor, or someone who has purchased a home before. We highly recommend that first time home buyers think twice before jumping into buying a bank owned home.
There are a lot of great deals to be had in every market, and many of them are not bank owned homes. While buying a bank owned home may be a great investment for some, it isn't for everyone. If you're looking to buy a home, speak with a qualified real estate professional in your area. We have sold many bank owned homes and the right ones really are great buys. However, a buyer needs to make sure they do their homework so they are properly prepared and know what they are getting into.
For specific information on luxury developments in the Cleveland area where there are numerous foreclosed properties, please click the following:
http://www.clevelandhomeexperts.com/channels/regional_localism/topics/thornbury
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