There are numerous homes being repossessed by banks and other lending institutions in Overland Park, Kansas. These foreclosed homes are terrific opportunities to invest in because you are getting properties with built in equity. Foreclosed houses are sold cheap in comparison with the property values of similar homes in the area. You do need to do your due diligence home work and check out area prices first so you know if you truly are getting a good deal. Not every bank repossessed home is always a bargain if it needs major system repairs and you have not budgeted for them. Have the property inspected so you know what you are getting. It’s also a good idea to work with an area Realtor to help you locate foreclosure listings.
Significant Things You Should Know About Buying Bank Repossessed Homes
The following are significant things you should be aware of when purchasing bank repossessed homes:
- Always look at the home in person. Bank foreclosures are sold in an “as is” condition. Don’t purchase a foreclosure listing off some bank list or someone else’s list over the Internet. You need to make sure the home fits your criteria and needs.
- Be sure to negotiate a contingency for a home inspection and loan contingency. Foreclosed homes purchased at property auctions and short sales generally require cash.
- Foreclosed homes are sold way below market value so you are getting a property with built in equity. However, there is a good reason that these homes are so cheap, and that is because many are in poor condition and need repairs. The former owners have let them get rundown. There are some that just need cosmetic repairs.
- The bank is not required by law to provide you with a transfer disclosure statement about the condition of the property unlike a resale home, where the seller must provide any material information about defects and the home’s condition. Therefore it is up to you to do all the investigations, including investigating if there are any building code violations or whether additions were built without permits.
- If you buy foreclosed houses at foreclosure property auctions, you should be aware that you cannot get title insurance and you may not be able to inspect the home. You are responsible for liens and evicting former tenants or owners. You have to pay for the home with cash at the end of the auction.
Buying repossessed properties in the Overland Park, Kansas area is a great opportunity to buy a home or investment property that you may not otherwise have been able to afford a few years ago. There are also many short sale properties for sale. A local Realtor can assist you with finding repossessed properties or pre-foreclosure short sales and making an offer on them. No one has a crystal ball as to how long these opportunities are going to last, so now is a good time to take advantage.