BUYING A BANK OWNED HOME * IS IT A GAMBLE AT BEST AND USUALLY A NIGHTMARE!

So you think you are going to get a great deal on a foreclosure. Think again.  Those days are gone and you could be stepping into something you should really want to avoid.  You could lose hundreds of dollars and not have a house to show for it, or find yourself owning a money pit!

Do you really need a place to live soon? 

Never put in an offer when you have any time constraints. There is no guaranty you will close on time or at all, when you enter into an agreement to purchase a bank owned property. One reason is the bank doesn’t have the title company search for a clear title until they have a buyer.  Then when a lien or unpaid HOA fees, or other problems are found it goes back to the legal department to investigate before they will pay it, which takes more time.   Meanwhile the buyer could be left waiting and wondering what is going on.

Are you a gambler?  Don’t put in an offer if you don’t have much cash to gamble on the transaction.  Just ask the buyer who has paid for an appraisal, a home inspection, termite inspection, wind mitigation inspection, paid to turn on the utilities for inspections, and a survey and finds out after laying out hundreds of dollars, the bank can’t close on time, or may not close at all. If it doesn’t close, the buyer,  having paid out all these fees, may have nothing to show for it, and there is no recourse. 

Do you think you want to do a little real estate investing?  You are not going to get a good deal on a bank owned property.  The days of discounted foreclosed properties are gone, because the banks are all pricing them higher than the market in order to push the market up more.  They have lots more foreclosed properties to sell. If the property is in bad condition, you should know you are buying it ‘as is’, and you should do the inspection first because many banks don’t allow an inspection contingency.  Many don’t do repairs. Many won’t even turn on the utilities for you to do the inspection.  You are on your own and it may become a money pit.  Beware!

What about auctions?  These are good, if you have an extra 5% buyer fee to throw in above the price of your bid.  This fee pays the auctioneer.  You're welcome!

Do you think you know what you are buying?  The bank has no legal responsibility to disclose anything they know about the property, that materially affects the value of the property, or anything about the property’s history.  It could have Chinese drywall, it could be haunted, there could have been a mass murder there, settling issues or even an active sinkhole.  They don’t have to tell you anything like normal sellers do.  It is all up to you to find that out on your own.

How can these nightmares be avoided?  Don’t buy a bank owned property. Hello! Don’t even look at them and they can’t rob you of your time and money.  Ok. You know someone who got a wonderful deal on a bank owned property. When was that?  Was it recently? 

For more information on successfully buying or selling a home in the Land o Lakes/Wesley Chapel, FL market please contact me at 813-714-9737 or you can visit my website for more information and Testimonials  www.DeeSmithSellsHomes.com