In today's market its very likely that if you are a buyer who is looking for a good value that you are going to end up purchasing a BANK OWNED home. Sometimes buyers get a little worried because the home is SOLD AS IS. All in all I feel its easy and not scary to buy a bank owned home. That comes from experience with numerous sales of BANK OWNED properties while representing the buyer.
Here are a few reminders if your looking to purchase a BANK OWNED home:
1. Normally you will not be able to get the price down more then 3-5% if the home is price correctly. If its over priced you may have to get your initial offer rejected and allow some time before the price gets to the RIGHT spot. Once its priced right it normally will sell at or close to the asking price.
2. Its not likely that the BANK will repair anything on the home. So if you get an inspection and think you'll get something fixed - good luck. Unless it NEEDS to be fixed to get financing through its just not going to happen.
3. If you make a lower offer that gets counter offered back and forth there is a good chance that another offer will eventually come in that is higher and you will lose the home.
4. You must be preapproved for a loan and you must make your offer in writing (Purchase Agreement).
5. BANKS normally want about 2% Earnest Money down with the offer. $1000 minimum.
This may be nothing new to most of you but these things do come up on every offer. These are not the only things to know but just the list I thought I would share tonight.
Chuck Carstensen is a Realtor with The Discovery Team at RE/MAX; helping buyers, sellers, and investors of residential real estate. He is a Dynamic Life Coach; The Discovery Coach- "Helping you discover your talents, desires and purpose." Carstensen is a speaker and co-author in the best selling book series Wake Up...Live the Life You Love: Your Wake Up Moments (available this winter).