Hey Miriam,
I see from your previous question you are looking to spend about 175K. Currently the soup of the day is Bank Owned Homes 175K to 225K. Bank Owned home account for about 25% to 33% of all sales in Arizona. That 175K range has a lot of competition, because of the affordability. Bottom line is that you have got to bump it up to 225K in Ahwatukee. Currently there are only 5 Bank Owned Homes that are single family available under 225K in Ahwatukee, and all of them have a Phoenix address, because of proximity.

You may need to head a little North East Chandler, or Gilbert to find a value at that level.
I just wrote a blog about Power Ranch Bank Owned Homes under 200K
http://www.phoenixrealestateprices.com/three-great-homes-inp…
Power Ranch is East of Ahwatukee

There are a lot of homes to choose from in the East Valley at your comfort level, Check out my site below, for video tours of other Bank Owned Homes, and east Valley Neighborhoods.

Good Luck
Patrick

One disagreement with the answers below ... the 60- to 90-day timeframes for a closing are far from set in stone. One of my buyers just closed on an REO - total time from offer submission to actual close was 35 days, including two weeks of negotiation with the bank. Another buyer of mine wrote an offer on a house in mid-June and is closing July 22 - 36 days later - and possibly earlier (not sure if earlier will work.) Another in March was done in six weeks.

There are exceptions, of course, but I wouldn't walk into an REO purchase expecting to have to have an extended time frame if that's not what you want. If your financing is place and you're working with an agent experienced in REOs, a 45-day (or less) closing is possible.

Hey Miriam,

You will need to make sure you have comparables and an inspection before making an offer. You want to purchase a home with something missing like and AC. A professional agent can walk you through this. Agents are compensated by the seller the bank in your case so its no cost to you.

We are seeing bank owned homes that have them ripped out. Remember cost of repairs too, low ticket items are o.k.
If you have any questions feel free to contact me!

Lucinda

Hi Miriam

Purchasing a bank owned property is one good option today. The bank owned purchase is similar in many ways to a normal purchase and different in that the bank takes more control and also you buy the home AS-IS. Many of the bank owned properties will need work, carpet, paint, appliances etc. Some are cleaned up and sharp, however many will need some work before you move in. We have often coordinated repairs, paint, carpet, appliances etc. for buyers like you that are out of state so that when you arrive you can move in.

Another factor is that it can be a little more difficult to pin the bank down to an exact date of move in. As mentioned above the banks take a little more control and seem less concerned about the fact that you are arriving on a certain date and may need to unload a truck etc. The banks will generally give us a date to close that works for them, a lot more difficult when you are making plans to move across the country.

What time frames are you going to be dealing with? Are you selling a home to buy this one? Do you have flexibility?

Ahwatukee is a great area, excellent schools and a great place to live. You do want to exercise caution to stay away from the proposed freeway.

I would be glad to answer any other questions you have about Arizona Real Estate.

Hi Miriam,

I agree with the answers so far. The two biggest differences are the timelines and the "as is" addendums for bank owned properties. Other than that, it is almost the same as any other home purchase. Just make sure that you are not in a hurry to close, you can expect it to take 60-90 days to close escrow. In some cases even longer. The "as is" addendum simply states that the bank will not invest any more money to fix any issues with the house. You can still perform an inspection (I highly recommend it) to see what kind of problems you may encounter and from there decide if you want to proceed with the transaction.

I have assisted many buyers through this process and would be happy to help you if you need it. Just let me know how and if I can help!

Todd

Miriam,

Buying a bank owned property is not much different than a regular purchase. Although the timelines do change, it is a slower and longer process and most times the properties are sold "As-Is" - which means that they will not do any repairs. Most times you still have the right to inspect and cancel if you find some unexpected issues with the house during the inspection.

I specialize in foreclosures and bank owned properties. I live in Chandler, close to Ahwatukee, and am very familiar with the area. Please give me a call or send me an email if you would like more detailed information.

RealtorCarlos@Gmail.com
602-512-5825

Miriam,

Buying a bank owned property is just like buying a property from any seller. The first steps would be to speak with an agent that can represent you and speak with a lender to secure financing. After that its very similar. Where it's different is that a bank will have their own addendums and may take a little bit more time to decide on the offer but that is not a rule. We have had banks reply same day, but others have taken up to a week. If you don't want to use an agent then make sure you have a lawyer look over the contract.

Hello, Miriam. If you give me your criteria for the new home I could email you a list of all the bank owned homes that are currently on the market. Let me know if I can help.

Rick Dobbles

Here is an excerpt from my website that will help you a little:
1. You must be ready to buy. If you have been pre-qualified by a lender to make a purchase you must ask your lender for an "LSR", Loan Status Report. The LSR proves that you are ready to rock and roll and are serious about buying this property. Many banks won't even look at your offer unless the LSR is attached.
2. If you are offering cash, you must have proof of funds available to show the bank. (Bank Account, Money Market Account, 401k etc)
3. This one is a suggestion and not necessarily a requirement: Have earnest money available and write it in your offer. Most banks take that as a sign of a serious buyer.
4. Once the bank accepts your offer, they will more than likely send a purchase contract from their office, not a standard one that Arizona buyers are used to. That is why I recommend hiring an agent to represent you, it is their job to read over that contract and protect your best interests. They will also help coordinate inspections and help with the escrow closing process. Many times you don't have to pay them out of your own pocket, they will share the commission with the listing agent.

Usually, if you are good with those 4 things then you can start looking. Contact me through my website if you would like an updated list.