Purchasing Bank-Owned Properties – Weighing the Pros and Cons

 Purchasing  bank-owned Homes for Sale in North Salt Lake Utah can be a good investment because more often than not they are priced 10 to 20 percent lower than the market value.  As a buyer, you can quickly  purchase  a  house  given that these kind of properties are reasonably priced. Though  keep  in mind that you have to take care of all the repairs your newly bought home might be needed. To help you out, the following are a list of the advantages and disadvantages of purchasing a bank-owned home.

Advantages

·  Bank owned-properties are much affordable to purchase as these kinds of properties are most often sold for less than their true market value. Since banks are not full –time real estate investors, they have little interest in become homeowners and even home sellers so, they price these Houses in Utah less than the market value to help them sell quickly.

· To protect the brand and image of banks, they make major repairs on the homes first before they put it for sale in the market. Due to the previous owners lack of funds, they wasn’t able to make some necessary repairs that make these houses a serious problem. Banks don’t want to sell deficient property because that will affect their names. Thus before they bring it on the market for sale, they make repairs on the home first.

· Banks may be more liberal in offering financing in the case of a bank-owned property. One reason is that these homes does not improve the institution’s either name or their Balance Sheet. In turn, they are willing to offer better terms on a mortgage loan for buyers who want to buy the property.

Disadvantages

· Not all problems in the house can be repaired by the bank. The bank may not cover all the expenses to repair all the serious problems in the house since they may not have all the luxury to do so. Some bank-owned properties may look alright from a distance but on the inside may have major deficiencies. These defects, however, may go undetected until the new owner buys and inspect the property.

·  Buyers will pay for the foreclosure costs like attorney fees, auctioneer fees and advertising as well as the high prior insurance expenses.

·  You will not be able to speak to the seller or the real estate agent with regards to the pros and cons of the home and other subjective questions. For one, the answers are not known to the lender.

Investing in a Algonquin Illinois Real Estate can be a highly lucrative investment, but it’s not for everyone.  Before you engage yourself in the deal, make sure that you weigh everything first and survey the property.

 

 

 

Leave a Reply