Buying a Bank-Owned Home…Look Before You Leap

Bank-owned or REO properties are usually priced below market value, and therefore attract a lot of offers (in south Orange County as many as 30-40 offers!). But give it some careful thought.  Many have serious issues like slab leaks or mold or plumbing and electrical problems. Many have had the appliances removed and even plumbing and lighting fixtures, and I saw one with all the interior doors removed! Many have had improvementscartoonhome01 done by homeowners who were not licensed, and therefore the changes may not be safe or to code. A buyer needs to take all that into consideration and make a bid wisely. A bank has no idea of what issues a home may have (since they never lived there), so they can’t disclose anything to you and therefore are not liable in most cases.  It will fall upon the buyer to satisfy themselves with the condition of the property through the inspection period.

With all that said, a bank-owned property can still be a good investment. It involves some risk and more homework that usual, but in the end, you can walk away with instant equity! Call me to help you find the right REO property for you! 949.525.5905

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