It's commonly assumed that bank owned homes are a real steal and one should run out blindly and buy it, but that’s not always the case and mostly is not. Banks are much more motivated than most sellers for sure as they have thousands of home “in stock” and want to get them off their books as soon as possible, but they also know they don’t need to make their losses any worse than they already are. When considering buying a bank owned home, you need to be as prudent as you would be in any big purchase and check your comparables to make sure you are getting at least a good buy, which you usually are.

Chris Farkas
EXIT Realty Associates
www.RealBellingham.com
www.SoundShortSale.com
www.CHristineFarkas.com

 

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7 Comments on Is a bank owned home a bargain or a steal?

MAR
18
2009

You are right. Another thing that buyers must consider is the property condition and how much that they must put into the foreclosure to get it up to par with the non-foreclosure comparable homes.
10:13pm • #1
882,832 Points 50 Featured Posts Localism Sponsor Outside Blog Hit Router Attended Rain Camp

I think that the biggest problem the banks face is valuing the properties.  Often it seems that the person 'negotiating' at the bank is in some remote location where values are out of whack with where the house is... 
10:22pm • #2

That's where a good BPO and REO agent comes in handy that knows the local market...
10:27pm • #3

Sometimes you can negotiate a lower rate if you get a mortgage and buy the REO from the same bank.

Good luck to you in 2009

Karina
10:53pm • #4
MAR
19
2009
742,085 Points 16 Featured Posts Outside Blog Called Shot Master

Chris, I agree! When making any purchase, it pays to do your due diligence.
8:39am • #5
MAY
13
2009

Chris

Hi good post,alot also depands on your local market.Here in the Milwaukee market even if you do your homework the banks are getting in the 90% range for most of our town.That makes it hard to find a good deal you need to jump on it and not think to much.Just my two cents.

Bob Oettinger
2:20am • #6

Bob,

You are absolutely correct. Bank owned deals are heavily geographically dependant. In my are of upstate Washington our values are still strong and banks are not negotiating too heavily. If it is a good deal we have bidding wars.

CHris Farkas

 

 

 

 

 
Chris Farkas
9:40am • #7


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Christine Farkas (Keller Williams Western Realty) Rainmaker_large

Christine Farkas

Bellingham, WA

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Keller Williams Western Realty

Address: 2211 Rimland Drive, Suite 124, Bellingham, WA, 98226

Office Phone: (360) 312-5919

Cell Phone: (360) 393-0793

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The majority of my clients already live in or around Bellingham and are both selling and buying in our area. Some of my clients are selling out of the area and moving to Whatcom County from as far away as California or even Washington, DC. Bellingham and Whatcom County are vibrant places and are undergoing many changes. This is the greatest time ever to live in the Pacific Northwest and especially in Whatcom County.


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