Bank-owned properties come into a bank’s possession when a borrower defaults on a mortgage and the bank repossesses the home through foreclosure. Unlike traditional listings, these properties are essentially unwanted inventory for financial institutions, which aren’t in the business of owning or managing real estate.
And this is good news for buyers and buyer agents alike! Banks are motivated sellers, often seeking to sell these properties quickly to recoup their losses and avoid additional costs tied to maintaining them. It’s all about being aware of when they’re on the market and acting fast.
Let’s understand why said assets are advantageous for buyers and how to stay aware of new bank-owned properties for sale.
Bank-owned properties for sale: why are they a good idea?
Buying property from banks can offer several advantages to your client, especially if they are investors or buyers looking for cost-effective opportunities. Here are some key reasons why it can be beneficial, for you to discuss.
- Lower Purchase Prices
Banks are usually looking to sell the properties in their portfolio fast, since they do not generate revenues for the institution but carry maintenance costs and may depreciate if unoccupied for too long.
So, bank-owned properties for sale are often discounted to move them off the books quickly in auctions, for example, or are sold under better conditions (such as lower closing costs or financing rates).
For investors, buying a property at a discount creates an opportunity for higher returns, especially if the property appreciates or generates rental income.
- Financing Options
Speaking about better conditions, some banks offer special financing deals or incentives on their bank-owned properties, with conditions like lower interest rates or reduced fees, making it easier for buyers to afford the purchase.
- Less Competitive Bidding
Since bank-owned properties are often less competitive than regular listings and less advertised, buyers might have a better chance of securing a deal.
- Quick Closing Process
Bank-owned properties often have streamlined processes to encourage fast sales, which can lead to quicker closings compared to traditional purchasing flows.
- Possibility of Additional Services
Buying bank owned properties for sale can present unique opportunities, but it’s essential to do thorough research and consider potential repair costs, since many of them could have been neglected by their past owners and may need work.
On the bright side, it’s common that banks offer additional services to buyers, such as renovation loans, to encourage the purchase. This way, your investor or buyer client has the chance of turning this investment into the property they were looking for without adding much to their financial burden.
How to buy bank-owned properties
If you don’t know where to search for bank-owned properties or wish to find these properties in an easier way (without the need to be present in auctions, for example), CASAFARI can help you with that.
Inside our Property Sourcing you can find a filter for you to see only bank properties for sale that match your criteria of location and characteristics. It’s easy like that!
Improve your property search and gather real estate leads with CASAFARI
Also, if this must be a recurrent search, you need only to set an Alert with the desired criteria and let CASAFARI do the work for you. You can define the frequency you want to be notified, from instantly to weekly, in order to grant that you never miss a new opportunity.
Gather more property leads with CASAFARI: get to know Alerts
Bank-owned properties offer a unique and often cost-effective path to property ownership, presenting advantages that traditional listings may not. And, now that you know that CASAFARI’s extensive property database and advanced filtering options empower real estate professionals to discover these hidden gems with ease, you’re one step closer to being able to show these opportunities to your clients!
Whether they’re seeking a profitable investment or a new place to call home, CASAFARI’s products can simplify the search, ensuring you find opportunities aligned with their needs and budget.
