Here are just a few tips when deciding to make an offer on a bank-owned property...
1) Be prepared to wait. The dates setforth in a typical purchase agreement between a standard buyer and seller are honored on time. However, when making offers on bank-owned properties, be prepared for the possibility that the dates set forth in the timeline will take longer, due to response from the bank.
2) Be prepared for multiple offer scenarios. Quite often bank-owned properties are priced to move quickly. Therefore several buyers will be looking at the property within a very short time span, and most may opt to make an offer. In which case the bank will ask for "highest and best" offers from all interested parties.
3) Do hand exercises in advance. While you have your own purchase contract that your Realtor will draft to make the initial offer, expect that the bank will have quite a lot of paperwork required for you to sign.
4) Bank-owned properties are almost always sold in as-is condition. It is the responsibility of the buyer to have any inspections done that they deem necessary, and it is unlikely the bank will make any needed repairs or adjust the purchase price or offer credits for any repairs. Hence, the lower asking price.
5) Prior to making an offer on a bank-owned property, be aware of any financial notes or first-look periods, especially if purchasing as an investment. Pre-approval or proof of funds are almost always required to accompany your offer, so make sure you have already made a trip to the bank to find out where you stand financially. If you are an investor, and do not plan to occupy the property, often you cannot make an offer unless a certain number of days have passed. Your Realtor can advise you of any of this, if it is posted in our MLS.
Good Luck and Happy Hunting!