Bank Owned Home

Advantages of Purchasing a Bank Owned Home

 

The moment you decide to purchase a home to the moment you actually move in to it can be highly stressful. First you have to hire a realtor to find a home, sell your home, wait for approval, pack everything, unpack everything and readjust to a new setting. You also have to hope that the home you bought is really as great as you thought it was when you first walked into it.

People who pay attention to the housing market are well-aware that the market is unpredictable. Ever since the housing crisis of ’07-’08, the housing market has become a buyer’s market. Many people had to foreclose on their homes, which the banks ended up purchasing. It became harder for homeowners to sell the property at reasonable prices to make a profit. This would seem like something that’s great for buyers but it also worked as a catch-22 because it was harder for buyers to sell their own homes to afford the new homes.

But maybe you’re not one of those buyers and you have the money to spend; you’re just looking for a great a value. As mentioned above, there are a lot of bank-owned homes available in the market. Below are some reasons why purchasing one of these homes is a great idea.

Pricing

One of the best reasons to purchase a bank-owned home is the pricing. Because the sales of these houses are time-sensitive, banks are usually willing to sell a home below market value. Foreclosures occur in all housing price points, so you may be able to get a decent home for a moderately discounted rate.

Buying Time

It takes about six to eight weeks on average to purchase a home and move into it. But, because banks are in a rush to sell foreclosed homes, it’s possible for a buyer to close a purchase and start moving in at about one to 3 weeks.

Upgrading

Many foreclosed homes will come with some issues: maybe the house hasn’t been maintained and kept up to housing regulations; maybe there’s some damage to the roof, walls, or floors that haven’t been taken care of; maybe there’s an add-on being built that was never finished. Another great reason to buy a bank-owned home is the opportunity to “flip” it. A person can buy one of these homes for lower-than-market value, upgrade and repair it, and then resell it for a higher value which will turn them a profit.

To some people, buying a bank-owned home is risky.  Others can see the advantages of purchasing one of these homes and quickly capitalize on the opportunity. If you want to purchase your home faster and for a lower price, you can go online and search bank-owned home listings and speak with an agent at any time. Don’t hesitate of finding your dream home at your dream price!