Touring a Bank-Owned Property
Posted on November 10th, 2007 by Jonathan Dalton
Yesterday morning, some clients and I went house shopping. Most of the homes on their list were short sales (not intentionally - they were looking at list prices and didn’t realize those prices were bogus) as well as one bank-owned property.
Many people envision bank-owned properties or homes in the process of foreclosure as steals … pristine houses available at low prices. Reality, however, often is different.
I ought to have brought my camera along for the ride and maybe if I can find some time over the next few days I’ll swing back for some photos.
Among the missing items:
- Surround sound speakers
- Ceiling fans
- Range/oven
- Microwave
- Garage door opener
Also the home was vacant which technically is true, at least if you don’t count the termites as residents. We counted four termite tubes just at a quick blush … we’ve never actually looked for them before ($60 for a termite inspection does the trick) but you couldn’t miss these, especially the one that was nearly a half-inch thick.
A bargain indeed.
Truth be told, this house could be beautiful again. Remove some of the yellow paint, replace the stove, fill in some screw and nail holes in the wall, replace the arcadia door, treat for the termites … all could be done to make the home a showcase. The flooring was good and while my clients didn’t like the granite counters in the kitchen I was a fan.
But at a price still hovering well above $400,000? Not a chance.
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Don’t forget no seller disclosures and/or unpermitted renovations which would come up in a normal sale. At least with a short sale, the owner is involved enough to answer questions via the disclosures.
At least that “should” come up with a normal sale.
Short sales now have a separate addendum. I’ll have to see if I wrote about it. I think I did. Very buyer-focused except for waving seller warranted items. That’s not so good.
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