Expert: Ray Beggs - 8/6/2007

Question
I have recently found a home in California that I would like to make an offer on.  The home is being sold "as is" and is bank owned.  Are there any possible advantages of buying a bank-owned home? For example, is the bank likely to accept an offer lower than the asking price?  Also, is it wise to submit an offer with a contingency based on me getting financed because I would hate to lose out on the house or should I wait to secure financing before making the offer? Thank you for considering my questions.
Karen

Answer
Hi Karen,

There are good and bad things with buying a foreclosure (bank owned) property. One of the good things is that they usually go for a lower price then the surrounding neighborhood homes. One of the bad things is that many people will make an offer on a bank owned home, so there is more of a chance that there will be someone that either outbids you or is able to close it faster than you. (All cash for example.) My first condo I bought was a foreclosure. I can't say it was my favorite experience, but I got it done and I got a pretty good deal.

Best of luck,

Ray