Today I want to talk about the difference between a homeowner sale and a bank foreclosure.
There actually is not much difference. However, there is an emotional side to a homeowner sale, while banks have a strategy behind how they liquidate the property for foreclosures.
Banks work with appraisers and brokers for opinions on price before they put the home on the market. They also check for any condition issues to reflect that in the price just like a homeowner would.
The only big difference is that banks want to compete in the market, so they will have a strategy to do that. They also make price reductions on a more regular basis because they may have a bottom line that they have to meet to pay off a mortgage.
Writing an offer on a bank foreclosure versus an offer for a homeowner sale is still the same. The offer will still have to be presented to the seller, whether that’s bank or the homeowner themselves, and then negotiated out like any other contract is.
Do not be afraid of bank foreclosures. There are a lot of stories about whether they are harder to deal with, easier to deal with, or if you can get a great deal on a property. That all depends on if the bank has rehabbed the property and got it ready to sell or if it has bigger issues like any home could.
All in all, bank foreclosures are still good properties to buy. You just have to make sure, as with any other property, that you get a home inspection completed first.
If you have any additional questions or are interested in buying or selling, please feel free to reach out to me. I look forward to speaking with you soon.