Pinetop White Mountain Blog

Happy Saturday Everyone!

I decided today to share with you my most recent experience with  Bank Owned property Sales.  There is no question that there are some great deals out there right now and for you Buyers who have been waiting for prices to come down on homes, now is undoubtedly the time to act.  Prices on homes are at their most affordable level in many many years. 

This is especially true with Bank Owned Properties.  However, you must be prepared ahead of time that patience is truly is a virtue when dealing with Bank Owned properties.  The banks do not subscribe to the term "Time is of the Essence" except as it relates to them.  It takes a lot of time to get an answer on offers and then they will basically negate everything in the Arizona Contract to place themselves in the best position.  Inspection times will be very short and they may even expect you to do your inspections and provide them with any items that need to be addressed before they will even agree to open escrow. 

All that aside, if you have the patience to deal with it and to truly embrace the old adage "Buyer Beware", there are some good deals out there.  Most bank owned properties will need work done to them and if you are going to get financing or down payment assistance for the purchase, you will need to be prepared to raise your price above the original agreement to offset the cost of the repairs.  Banks DO NOT and WILL NOT do anything on the house to help you buy it.  The only repairs they will make are those that eminently could cause further damage to the home.  Basically plumbing and fire hazards.  Anything else will either have to be accepted in "AS IS" condition or be your responsibility as the Buyer to have them repaired. 

The Banks and Asset Management Companies would all like to see All Cash buyers so they don't have to do anything, but in most markets that just isn't the case.  You just need to really look out for your own interests, get good inspections done, and be prepared that you will need to put some sweat equity in to the property right away.

Patience and tolerance are what is required to buy these types of properties.  You do need a REALTOR® guide to help you determine how best to respond to the Counter Offers you will receive.  Even experienced agents sometimes need a second opinion on how to deal with things because the Counter Offers from the Banks and Asset Management companies are as varied as the weather.  No two are alike although there are similarities.  Many are written in Legeleze or Attorney speak and it sometimes takes several readings to determine exactly what is being said and asked of you as the Buyer. 

So find a good agent to help you.  You are reading a post by one of them now.  With over ten years of experience in the Arizona Real Estate Market and having an excellent broker to go to for a second opinion if it is needed, we can help you over the humps and bumps of purchasing Bank Owned properties.  We can help you make good decisions and we can direct you to good inspectors and lending institutions to help you after the offer is made.   

Give us a call and let us help.  We are, as always, at your service.

Sandra Paulow, GRI, REALTOR® (928) 242-0300