In our Columbus, GA/Phenix City, AL area market “Bank-Owned Homes” are usually described as “Foreclosures”. Even though the terms are used interchangeably here and in other places, there is a difference. The difference between a “Foreclosure” and a “Bank-Owned Home” may be technical, but important to understand. Foreclosures are properties that are auctioned off in a court process. A bank-owned home, on the other hand, is one that has reverted to the mortgage issuer: a bank.
A foreclosure can change hands with the bang of the auctioneer’s gavel: it’s a cash-in-hand situation, carrying all of the excitement (and risk) of any auction.
With a bank-owned home, the ‘owned’ is attached by hyphen to a banking institution – a spot not exactly known for excitement. True, banks are eager to sell, since a bank-owned home represents an unprofitable financial and management burden. But banks are by definition cautious, thorough and usually (unlike auctioneers) prone to moving like molasses in December. So, persistence and care will be needed to take advantage of the potential bargain a Columbus, GA/Phenix City, AL area bank-owned home represents.
Since you will need to prove you are qualified to buy a bank-owned home, being pre-approved for a loan is a must. It will also be important to have a good home inspector at the ready, since most bank-owned properties are sold as-is. You will want detailed information about the condition of the house and likely cost of repairs that need to be made.
And while there are many sources for identifying a suitable bank-owned home online, when it comes to the next step -- putting together a successful offer -- enlisting an experienced Columbus, GA/Phenix City, AL area real estate agent is standard practice. Sometimes a bank-owned home can be priced under market, sometimes over -- but if you want to write the winning offer, you need to examine and understand the latest numbers. By looking up the market comps and procuring costs faced by banks, your agent will help you present an offer that is both attractive to the bank and to you.
This year, whether you are looking for a first time home, a bargain fixer-upper, investment property or a luxury REO, as soon as you are ready to start the search, call me -- I can help you get the ball rolling!
If you’re considering selling or buying a home in the Columbus, GA/Phenix City, AL area call me at 706-442-1084 or click here! It can make all the difference!
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