Bank owned properties have been a phase of real estate that my team and I do not handle. Those are listings that are ideal for investors who are set up to rehab and often totally rebuild. Not every buyer is a good candidate for a bank owned property and they’re management intense if the listing agent is doing a good job.
I have witnessed many buyer agents working with buyers who are referred to them by friends and past clients, and those buyers are being shown bank owned properties. Because a home is within a first time home buyer’s price range does not mean that the home is the right fit for that buyer.
Bank properties are sold “as is” and the buyer is on his/her own to correct any problems. There are no protections for that buyer beyond the home inspection. The listing agent knows as much as he/she is told. There are only so many inspections that are available, and the costs begin to add up to an astronomical figure.
Bank owned properties are not for everyone and buyer agents should be very concerned if a first time buyer is interested in seeing them. First time buyers need to be educated on this topic and shown homes that are not beyond their ability to repair. If a buyer likes the home and you know there are problems, you’re headed down a very slippery slope, buyer’s agent!!