Buying a Bank Owned Properties

**BurlingtonBankOwned** · 09-18-2009, 11:31 AM

There a things to take into consideration when you buy a bank owned property. The value of the property, it's condition, among others.

For first time buyer this is the time to buy because of the recession, properties cost cheap and you can avail the $8,000 Tax Credit.

**Nick Brian** · 09-19-2009, 08:28 PM

Yes you are somewhat right. Because of recession property value has fallen drastically. But goverment intervention and for other reason it's gaining the value again. This is foreclosure season. Go for it.

**Hollywood Landlord** · 09-20-2009, 02:13 PM

It CAN be a good time to buy bank owned real estate... it depends on what your end game is.

If you are trying to get a house on the cheap and 'flip' it to a retail buyer, there are a lot of things to consider.... the ACTUAL amount you are getting the house for... sometimes a bank will say they are giving you .50 on the $1, but when you do the comps, it is not quite that (say .65 or more) which eats immediately into your profits. Then, if you buy this home and can only find an FHA buyer, you will have had to hold onto the property for a minimum of 90 days and in that time, your actual market price could still be falling, eating further into your potential profits.

And lastly, let's say you flip it in time and even have multiple buyers/bids, you can't even necessarily get the highest bid because you STILL have to have the appraisal come in at a realistic price and appraisers these days are VERY VERY conservative for fear of losing their jobs... no bank if going to approve the loan if the appraisal looks 'off' compared to the neighboring homes.

It is still all doable, just be very aware of your market and have access to accurate comps.