Sound Off: What are the pros and cons of buying a bank
Many buyers go on the hunt for bank owned homes as they think they are getting a deal. This oftentimes can be true, but there are also pitfalls to be aware of before jumping in to the market.
Because the banks are selling the properties, there tends to be a lack of information or disclosures. Buyers will need to do all the investigations themselves and take it as is; likely the bank wont be negotiating either, which is why you can typically get them for below market prices.
Sometimes these houses are in severe disrepair and with a lack of information the new buyer is taking on all the risk. The buyer should be aware that the bank is only out to protect themselves, but with all sales, “buyer beware”. There are also many moving parts to closing a bank owned transaction and many times delays are common.
A the end of the day bank owned properties offer an opportunity to purchase a property for below market, but with any “too good to be true” deal there are always setbacks which cause one to question: “Am I really getting a good deal?”