Whether you’re thinking about buying your first home or you’re thinking about buying your vacation home, you definitely have a lot of things to think about. One of the biggest things that you will need to think about is whether or not you want to purchase a bank-owned property, or if you want to purchase from a traditional individual. Unfortunately, a lot of agents will tell you that there’s really no difference between bank-owned properties and regular ones, but that’s not the case at all. In fact, there are some important differences that you need to know about in order to really seize the deal and work things out on your terms.
First and foremost, you don’t get the seller disclosures that you might be used to. In other words, you’re on your own if there are serious problems with the house — it’s buyer beware, and you have to weigh that in against the potential for a good deal. The house might have problems that the bank has no interest in revealing to you. This means that the bank will be selling you the house “as is” — there really won’t e too many request for repair notices honored by a bank that wants to dump the property as soon as they can.
There’s also no real hurry to sell you the home — so if you’re thinking about a quick move in, you might have to think again — it can take up to two weeks to get a response from the bank. meanwhile, that’s an extra two weeks that you and your family have to stay where you’re at in order to get things done.
The extra costs could even sneak up on you — a lot of contracts do favor the bank over you, which makes sense. You have to make sure that you have your rights represented properly by hiring a real estate lawyer. If you thought that you didn’t ever need a lawyer, you might want to think about this in further detail — yes, you really do need a real estate lawyer!
It’s important to ensure that you have someone looking over the deal with a fine toothed comb. Bank owned properties can actually be a good deal, but there are some serious pitfalls that you want to think about before you just dive in!