A real estate agent with vast experience and knowledge in the complexities of buying bank-owned properties is an absolute must for anyone thinking about purchasing such a home.
A bank-owned — or real-estate owned — property is one that goes back to the lender after an unsuccessful foreclosure auction. These properties are usually sold “as is” and usually can be purchased for less than their value.
However, the process of purchasing a bank-owned property is not always quick and easy. While one would think the lender would be eager to sell the properties and get them off their books, it doesn’t always work that way. In fact, it can take months to finalize the deal.
The bank will usually make a counter-offer to any original offer. This counter-offer may be higher than anticipated by the prospective buyer because the bank has to demonstrate that it is trying to get the highest price possible. Prospects should counter the counter-offer and expect to wait while their counter is reviewed by several individuals and companies.
It’s imperative that a knowledgeable real estate agent is involved to help navigate through all the intricacies, including contingencies that should be in place to protect the prospective buyer in case anything goes awry, such as expensive repairs that must be made to make the home habitable.