Homebuying can be a very stressful process, even more so if you are a first-time buyer. With the many purchase options available today, you may be wondering which one would be best for you. Let’s look at one of those options, bank owned property. While this can be a good, budget friendly choice, there are many pitfalls you need to be aware of in order to make sure it’s a good investment. Here are a few things you should keep in mind:
The reason most homes become bank owned is because the homeowner could not keep up with their mortgage payments. If they were unable to pay for that, its very unlikely they were able to invest much money towards the home’s maintenance etc. thus, the home may have become neglected. You may also find the home to be full of rubbish or has been stripped of anything worth money. If it was left empty, it could also have been vandalized.
Obviously, a look around the home should give you an idea of the condition its in but, this does not tell you everything about the state of the place. The best way to find out about the homes true condition is to have a thorough home inspection performed on it. Its possible your real estate agent may suggest that there is not point having the home inspected seeing that the home is purchased “as is”, however, isn’t it better to know what you are in for and how much extra you will need to spend to fix up the property? Yes, a home inspection can help you know how much work will be involved so you can determine whether this is a project you want to take on or not.
So, purchasing a bank owned property could be a great option but, make your decision based on a thorough knowledge of the homes condition so that you are not left with any unwanted surprises later on.
