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Buying a bank-owned property can seem overwhelming, but it can be amazing to see the potential in the property come to life. Here are a few tips for purchasing bank-owned properties.
When your offer gets accepted on a bank-owned property, you absolutely must do a full inspection. In order to know everything that is going on with the property, you need to call the utility company to turn the utilities on. Usually, the bank will shut off the water and electricity to prevent leaks and other issues while the home is vacant.
The utility company will turn everything on for 24 hours. That’s when your inspector can go in, run the water, check the heating system, and make sure everything is working. It costs about $200 to turn the utilities back on for the day, and the inspection will cost about $450 or $500, depending on the size of the property.
The property we’re filming at today has a great layout with a five-piece master bath. When you look through a bank-owned property, don’t shy away from dirty carpets, holes in the wall, or mildew in the ceiling. Small issues like that are all fixable. Pay attention to things you cannot change, like the layout and the location, before making the purchase.
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Don’t get hung up on small
issues that can be easily fixed.
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This property is listed at $388,000, which is a little high based on my market research. It is an active property and has been on the market for 155 days but the bank has not yet reduced the price. I think you could get this property at $325,000, and that would be a great value, especially considering that a similar, well-maintained property would run at $450,000 to $475,000.
I have been working with bank-owned properties for 11 years, and it is really fulfilling to see these properties get fixed up to their full potential. If you have any questions, give me a call or send me an email. I look forward to hearing from you!
