With the recent mortgage crisis in full swing, bank owned properties are becoming more and more prevalent. In Big Bear we are getting anywhere from one to five a week on average. As can be expected, they are selling at a brisk pace. Since they are typically priced at below market value, they make an excellent choice for investors and regular buyers alike. Since you are negotiating with a bank and not a home owner, it becomes a transaction based on numbers and common sense, with the usual emotion on the part of the seller not coming into play. Sounds good, doesn't it?
One important thing to keep in mind, many of these homes are fixers. And by fixers, I mean anything from a little paint and landscaping to a full on remodel being required to get them into tip top shape. Some of them have sat vacant for years with little or no care being paid to them. Some of them are trashed by vindictive owners who strip them of anything of value on their way out. And since these properties are sold " As Is ", the bank is not going to do any repairs on them before the sale. On the other hand, some of them are in great shape, and with the low prices, are an excellent buy.
With a full spectrum of conditions and prices, I would highly recommend anybody interested in buying to investigate the bank owned properties in the area in which you want to buy. It can't hurt, and if you find a great deal, is definitely worth the effort. If you are a contractor or have experience in doing remodels, you would have to be crazy not to investigate the possibilities. However, if you are an Average Joe, with little to no experience in such matters, you really need to weigh the pro's and con's, and investigate thoroughly the costs of such a project before you buy a fixer. Sometimes it is a very time and labor consuming process, but, if done properly, can be a very profitable one
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