Repossessed houses are on top of every homebuyer’s list whenever they are looking for a bmv property. The answer behind this simple. You get to buy bmv property at really rock bottom prices, because the banks or lenders are after a quick sale.
Based on my experience, banks or lenders try to sell a repossessed property as fast as they can just to make a profit. In property, time is money, and the longer a house sits empty, the larger the loss for the investor or owner. So they usually take the first offer which gives them enough to recover their loss on the house’s mortgage.
Sometimes, there are also a few lenders who like to play hardball and wouldn’t let go of the property unless the balance of the mortgage isn’t paid in full. If you encounter lenders like these, it’s better to just walk away from the deal. There are plenty of repossessed houses out there, anyway.
So how much discount can thrifty homebuyers get from buying repossessed homes? Around 10-30 per cent off the market value, and the discount could get higher when these bmv property leads need a few repairs.
Some of my investor friends, however, told me that a dicount higher than 30 per cent is hard to come by these days, since bankers prefer to sell repossessed properties on bmv property auctions. This is a great move for the sellers, but not so much for buyers, since you’d have to outbid people, ergo spend more money, in order to get the house you want.
Another attraction for buying repossessed properties is that you can buy any house in any state possible in these deals. What I mean is that, it’s not only houses in need of a little property renovation that are being repossessed nowadays, it’s also possible to get a newly built home this way!
Yes, you read that right. Know that it’s now only homebuyers that go to banks to lend money, some contractors and developers also take loans from banks to get their development going, and in the unfortunate event that their projects don’t take off as they want then that’s when the banks swoop in and take over their entire operation.
In case you’re eyeing real estate which needs repairs, visit the house as much as possible before you make the purchase. Ideally, you’d have to visit them with solicitors or surveyors, so you’d get to survey the property properly and you won’t be surprised with any horrific defects when repair time comes.
This is a very important part of buying repossessed properties, since there are a lot of hidden defects in these properties all the time. It’s better to know these flaws as soon as possible, otherwise you’re going to be stuck with a unfixable or unliveable property and you won’t be able to return it to the bankers or lenders anymore.
Tags: bmv property, bmv property auctions, bmv property leads, buy bmv property, property renovation
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