Amy,

Purchasing bank owned property can be tricky and something that should be done only with care. I like the suggestion of being aggressive with your offer and saving back some money as insurance. Makes sense....

The bank will only sell it "As IS" so once you have made an offer don't expect them to renegotiate in the event a problem turns up. It's best to check as much out as possible prior to making an offer. You may want to have a handyman or contractor or home inspector to look at the property with you to get their advice.

Pay close attention to the big ticket items:
roof
wiring
appliances
foundation
cellar
furnace

The age of the appliances, hot water heater, furnace should serve as an indicator for the service ability of these items with out electricity.

While making your offer, since there is no power available, tthere is nothing wrong with assuming certain items are faulty and deducting their cost from your offer, to be on the safe side.

God luck,
The "Eckler Team"

Hello Amy

You have options as the bank sure doesnt want the property.

1. Write an offer with a contingency of being able to inspect with the utilities on.

2. Have a full inspection, write an aggressive offer to allow for you to expect, prepare and live with the worse case scenario. Consider not utilizing your full down payment and have some in reserve for repairs.

Gary

On the last foreclosed property I purchased I did a comprehensive due diligence and found an encroachment also helped speed up the time line and reduce the asking price. I have a great attorney who helped me with a due diligence package Raquel Rothman Pl - 786-303-7529

Depending on the bank and practices in your area, you may tender an offer with the contingency clause that you are allowed to connect temporary utilities in order to perform your inspections. In our area it is common for the listing agent to put the utilites in their name until the property is sold and closed the bank reimburses them for their property management services. You could also get a home warranty on the property that covers "unknown conditions". These policies do have their limitations, but it would be a reasonable investment.

I in the the process of dealing with a sale of a bank-owned house for my clients. Check with the bank and check their Contract and Addendum - we bought the property "as is with right to inspect" and the bank was obligated to turn on the utilities so that inspections could be performed. It's always a good idea to know what you are getting into and to be prepared for what may need to be done.

Home inspections are only moderately useful in buildings with no utilities

Make your offer contingent on a home inspection and any tests you would be willing to pay for yourself. Be sure to give yourself the right to get out of the contract if the repairs are more than you can handle. The Bank will probably have you sign an as-is addendum with your contract that they will not repair or be responsible for anything so it's all your responsibility. Bank owned properties are usually a good way to purchase.

would need to know more about
1. How much money you have
2. What you plan to do with the property
3. where the property is
4. what you think the value is vs what you're paying

Bank owned properties are great deals, you can protect yourself with a home inspection.