Scottsdale bank owned homes are generally associated with bargains and many are.Â You can get a good deal and by a good deal I mean below current market value, but are they a good deal, not always.Â There are a few things you will be giving up.
The purchase of a bank owned home is always sold â€œAs Isâ€ which means, donâ€™t expect the bank to make any repairs.Â Occasionally, the bank may agree to complete repairs if they are reasonable and required by the buyers lender, but this rarely happens.Â Be cautious when selecting homes to tour if you are obtaining FHA or VA financing.Â There are requirements in regard to the condition of the home to get a loan and some bank owned homes will not meet the requirements.
Be aware of liens, like Homeowner Associations (HOA) past dues and transfer fees that can be very hefty.Â Many times the contract and the bank addenda to the contract are not clear about who will be responsible to pay.Â Be prepared for a few additional costs and remember you are getting a home at a great price.
Always, recommended to have a professional home inspection, especially with a foreclosed home.Â Not only will the bank not tell you anything about the property, but it may have some issues as a result of the former owners retribution.Â With a traditional sale the seller will provide the buyer with a Sellers Property Disclosure Statement with their knowledge of the home.Â The bank is not required by law to provide this document since they have never occupied the home and have no knowledge of the homes condition.
Bank owned homes are often priced under the current market value and have a stigma of being a good deal so expect some competition.Â While many homes are good deals, you have to remember, part of the reason they are offered at a lower price is due to the condition.Â Make sure you add up how much it will cost to get it move in ready.
Have fun searching bank owned homes and sign up free to save your favorite homes, home searches and receive personalized email updates. If you have a question or would like to schedule to tour any homes, give me a call (480) 403-1860. I would welcome the opportunity of assisting you with your next move when you are ready to proceed!