Many buyers are considering bank owned properties as an alternative to regular listings or short sales. Why? What are the advantages and disadvantages?
Price is one good reason. Often bank owned/foreclosed homes are priced considerably lower than other comparably listed homes. Buyer beware though, necessary repairs are often factored into the bank/agent determined price, so low-ball offers tend to be rejected over the more educated buyer's offer.
Appraisals! If a bank owned property doesn't appraise the bank will often yield to the appraisal and reduce the selling price to meet the appraised price. Most short sales 
succumb to this same process as well. This is one advantage over regular listings where there is a seller involved who may need to get a certain amount of money in order to release the house.
Location, A vital criteria in determining whether or not this home/investment is right for you. If a house is priced at $30,000 and is in a typically rental area where the average rental goes for $650-$850 then turn the traffic lights green! Where do I sign??? If on the other hand this $30k home is located in a beautiful, owner occupied subdivision where homes are normally priced at $150,000, then red flags might be the order of the day.
Closing on a Bank Owned Property: Depending on the bank and title company chosen to perform the closing the average bank owned property can be closed in 2-6 weeks as opposed to very lengthy and uncertain outcomes of short sales.
Are bank owned properties a viable alternative? They most certainly can be, but do your homework and get a knowledgeable Realtor to assist you in purchasing your bank owned property.
For current available and daily updates on bank owned properties please email me and get in on some wonderful opportunities while they can be found!
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