In recent years, an increased number of consumers and investors have been taking advantage of low-priced bank-owned properties. These properties have allowed them to get a good deal while prices are substantially affordable compared to the rest of the real estate market.
However, purchasing a bank-owned property can be a complex process, especially since some of the previous homeowners' debt may need to be settled before a potential buyer can take hold of a property deed. While foreclosures may offer bargains on home prices, they could also come with unforeseen costs, such as repairs or tax bills.
As such, it is essential that investors and buyers, as well as their real estate agents, get the requisite information to ensure that they are not surprised by additional financial burdens attached to a property.
For example, it is advisable that that buyers and their representatives obtain a warranty deed on a property to be sure that they and their mortgage lender will not be responsible for any undisclosed encumbrances on a piece of real estate. A deed search should also be completed, to ensure no other entities can make claims against the home.
Property tax records should also be obtained, as unpaid tax will become the responsibility of a new owner. Buyers should obtain tax records as far back as 30 years, as unpaid government dues from the previous two homeowners will factor into a buyer's fiscal obligations.
Banks selling properties that have come into their possession will also want to do local market research to ensure that they are getting the best possible price for the distressed property so that they will not lose out on their investment.
Determining the estimated property value of similar area home is one step of this process. But, banks should also search for comparable neighborhood homes that have sold recently to determine an appropriate asking price for their real estate holdings.
A proper valuation of the home should also be made, and in addition to an in-person inspection, assessors will need information regarding additions made to the home, which can be determined by researching building permit history in local offices.
While this research would typically require the pooling of a number of resources and extensive legwork, much of this information can be now be found from the comfort of one's office by using CRS Data. These helpful resources have all the necessary information in one place, making it easier for bank-owned properties to be bought and sold.
“The quality of our work would not be as good without CRS. And it would take hours to get the work done without CRS."
CHARLIE HARPER - Sunmark Community Bank