There are so many people asking the same question today about buying homes, "Should we consider buying bank owned homes"? What is bank owned homes? These are the houses sold by agents that work for the bank and are foreclosed properties that are seized by banks .In the real-estate world, there are a few classifications of houses that you need to think about when buying a new home. On one hand we have regular homes that are sold by individuals or real estate agencies. On the other hand we have properties that are owned by banks. Is there any advantage that you should get in choosing one of these options?
There are also a few advantages in buying a bank-owned property as well as clear disadvantages that you as a home buyer should know about.
Availability - There is always a surplus of foreclosed houses in any state or city today. This is because of the continuous economic problems that keep on banging the world on its head. These are houses that fail to pay a certain amount of money they owe from a bank; in return the bank seizes the property instead.
Dominance - If a real estate market is dominated by bank properties, there is a huge possibility that every regular house for sale will come down to the price that is popular in the market. Giving properties owned by the bank that total control of the market.
No Disclosures - You will have little to no disclosures about what was the history of the house you will be buying from the banks. This is part of the agreement that they had made with the previous house owner-making a buyer blind of the past that has happened in the particular home.
As Is Condition - Banks would rather sell their properties in the same condition that they got it. They will never pay for any pest, sewage or roof inspection.
Options - Compared to bank properties, it would really depend on the market of a certain area. If the market for regular homes is stronger that the bank owned properties then you might get lucky. In most cases, real estate market is strongly controlled by banks.
Transparency - The good thing about buying a regular home is that you get all the transparency you can from the house history of the current situation of the house, whether it still needs repair or not.
Pristine Condition - Most of the time home owners that are willing to sell their houses would always make sure that their homes are in top shape. This would increase the chances of selling the house to a new owner. Plus, you do not need to worry about repair costs and any utility maintenance problems. There are only a small number of houses sold today in as is condition.
It all comes down to choosing the right home for you and your family. Acquiring such property can be tricky for people that are new to the real estate market. Just like the economy today, real estate properties can go up and down with little or no warning at all. Choose the right one that fits your budget and that has been properly thought of.