Bank-owned properties are usually in high demand because they have a potential for discounted prices, are investment opportunities and a buyer can negotiate favorable terms with the lender. Accordingly, purchasing these homes can be challenging since they attract many buyers. Besides, the process can be longer than buying a traditionally listed home.
Nonetheless, you can smooth your process when you are well-informed. You need to:
Know where to find listings
Typically, banks list foreclosed homes with real estate agents using the multiple listing service (MLS). They also put listings on their websites and specialized foreclosure listing platforms. It’s more manageable to work with a real estate agent, as they can help you spot a real estate owned (REO) property that checks your boxes on the MLS as opposed to scrolling through pages by yourself.
Additionally, the agent can provide you with sufficient information about the home to help you make informed decisions. For instance, they can inform you about the home’s value and current condition and if it needs repairs.
Understand the bidding process
A significant percentage of foreclosed homes are sold through public auctions. Thus, you need to learn more about how the bidding process works in Connecticut.
Note that the committee in charge of the auction will not provide details about the property’s condition. You are required to place a bid based on your own information and knowledge learned through your own efforts. This is another reason to work closely with a real estate agent. You do not want to place bids on homes you do not have enough details about. You may end up spending a lot of money to make a property inhabitable.
Acquiring bank-owned properties through foreclosure auction bidding can be beneficial. Obtain more information to avoid costly mistakes.