When acquiring a bank owned property, potential buyers need to keep these important facts in mind:
- Bank owned properties are sold in “AS IS” condition. Banks will NOT make any repairs or alterations to the property resulting from inspectional issues.
- Banks will not negotiate purchase price as a result of any inspectional issues.
- Negotiating a purchase price takes a minimum of 48-72 hours, but often times can take 2 weeks or more.
- All Purchase and Sale Contracts are prepared by the bank to specifically cover their interests; contracts CANNOT be altered or negotiated.
- If a closing is extended by the buyers, the bank usually charges a per diem fee.
- Bank owned homes can be difficult to mortgage and may not qualify for VA or FHA mortgages.
Remember, just because a property is bank owned doesn’t mean it represents a better value than any other home offered for sale. Top agents understand that any particular property must be judged on its merits, not by the seller.
