Buying a bank owned property in Northern Virginia can be a great way to get a good deal and have some “instant equity” in your new home. This article gives you access to all of these types of sales in this area, as well as some more information about what makes these types of properties different from other sales.
Search all Bank Owned Property Listings in Northern Virginia
Recently, a first time home buyer client asked me if buying a bank owned home was a good idea for a first home. It’s a great question, since these types of property sales have some key differences.
What’s a Foreclosure Auction?
While I definitely wouldn't recommend an auction-type foreclosure as a first time home buyer, a bank owned property would generally be fine as a first time home buyer. With an actual foreclosure auction, you can’t do a home inspection, you can’t tour the property, and you usually have to purchase the property with all cash (no bank loans, etc.)
How is a Bank Owned Property Different from a Foreclosure?
A standard bank owned property is often referred to as an a REO (real estate owned) by real estate professionals and it’s often referred to as a “foreclosure” on home search websites, since it is a property that has been foreclosed on and is currently owned by the previous owner’s bank. This type of property purchase is a little more complicated than a regular home purchase, but not too much.
For instance, you can still see the property, you can still have a home inspection, you can still get a loan, etc. While you wouldn't be able to ask for repairs or money after the home inspection like you would in a regular purchase, you can still cancel the contract if you feel like deal breakers came up in the home inspection.
For a standard bank owned home, the main difference is that you can't ask for repairs or money after the home inspection, and there is more paperwork involved (because it's owned by the bank). But those extra hassles are why these types of properties sell for less than standard sales, which is not a bad trade off.
Bottom line, since you can often get a very good deal on these types of properties, this often makes it worthwhile.
Check out another one of my past blog posts on these types of sales to learn more:
When you buy a bank owned property in Northern Virginia, will you always get a great deal?
Schedule a Viewing for a Bank Owned Property!
Call me at 703-462-0700 or email me at DarrenRobertsonHomes@gmail.com to schedule a time to see one of the bank owned properties that is currently on the market! Listing pictures only tell part of a property’s story, so it’s important to see as many homes as possible in person to get a feel for what’s out there.