This can be a strange headline with all the foreclosure news. Here’s what you need to know about bank property.
The average discount on bank property is 26%. That means every house sold by banks after the initial auction where no one bought is selling for 26% below market value.
Let’s do the numbers:
$200,000 home that’s in good shape, let’s say just needs $5,000 worth of cosmetic repairs. We take the $5,000 off the price and multiply $200,000 by 74% to get what you’ll pay for that house. That’s a price of $144,300, giving you a $55,700 discount on the house. This is the time to buy because that’s the average if you really know how to buy or bargain you could get 50% or more off the price of a property.
The bank property also has all tax liens or title issues cleared up when you buy. This will save you a lot of headaches and make it easier to buy property from the bank.
The easiest way to find a bank property to buy is to contact a local real estate agent who lists bank properties or you can ask a real estate agent to email you an MLS listing every day. . This is what I do when I’m looking for great deals in the city I’m based in. I receive the emails and search through them for properties that fit my area and price criteria. When I find the properties that fit what I am looking for, I will take a look inside, based on the inspection I will negotiate to lower the price.
I just negotiated a property from a bank for $39,900 to $25,550. They accepted my low offer right away, which told me I should have lowered the price. What if I just take your price and don’t offer a price lower than what the property was listed for? When making offers, always lower the price; You can raise the price, but usually never lower it once your initial offer has been made.