How to Buy Bank Owned Property Safely

You may be able to save money when buying a bank owned home.

According to Everything Real Estate, bank owned homes can be as much as 20 percent less than the market value of similar properties. Despite the potential discount, being an informed consumer is the best way to purchase any parcel of bank owned real estate.

Inspection

Property inspections performed by a licensed home inspector will help to uncover any structural problems or deficiencies with the property. When selecting potential properties to make an offer on, getting an inspection should be factored into the cost.

CMA

A comparable market analysis, or CMA, functions as a mini-appraisal. This service is performed by a real estate agent as a tool to validate the asking price of a property and to guide buyers to make a fair offer. It also serves to evaluate the potential value of a property and protects buyers from overpaying.

Hire Your Own Representation

Banks list their properties with agents who represent and act on behalf of the lender. When making an offer on a piece of real estate, it's in the best interest of the buyer to hire representation in the form of a real estate agent or real estate attorney.

References

• Everything RE: Buying Bank Owned Properties
• FrontDoor: article.aspx How to Buy a Bank-Owned Property or Real Estate Owned
• Real Estate ABC: Buying Bank Owned Properties (REO)