Important Tips In Purchasing A Bank Owned Property

by Simon Lindsay on Foreclosures

The low prices of repo homes and foreclosed properties should not only be your motivation when buying repo homes, foreclosed and distressed properties. When buying a bank owned property, there are important things that you should remember in order to get the best deal available in the market.

Purchasing At A Better Price

You might think that with the low prices that foreclosed properties are being sold for, you no longer need or can not anymore take steps to lower them further. You can actually actively seek to lower the price of a property by looking for those that have been in the market for some time. Banks would definitely want to see them off the market and be willing to negotiate with you especially if the property has already been on the rack for too long.

It is important to remember, though, that when negotiating for a bank owned property, you should at least aim for 15 to 25% below the asking price. Banks would definitely assess whether they can go below their minimum asking price but learning the art of negotiation can give tilt the bargaining table to your favor.

Buy Fixer Uppers and Handymen Specials

There are people who cannot understand why some people would opt to buy a house that needs a good amount of fixing and rehabilitation. They overlook the fact that these run-down houses could in fact be more profitable in the long run than those houses that look good outside but are definitely not worth keeping.

Fixer uppers and handymen specials are priced at very low rates due to the fact that they need some level of repairs. Of course, the key to doing it right is to look for those houses that only require reasonable amount of repairs and which can still give you a good profit even after you have deducted the costs of all the fixes and repairs.

One of the best way to ascertain whether a bank owned property is in need of major or minor repairs is to hire a professional property inspector that can give you an overall assessment of the general structural integrity of the house as well provide you with information on which parts or areas of the house need repairs. Just make sure that when you add the costs of all these repairs and fixings to the purchase price, you can still derive a good profit from your investment.