Is it wise for a first time home buyer to purchase a bank owned home or what they call "Short Sale"?

Question

The short sale homes and bank owned that we have seen aren't that nice and need some repair. We don't have the time or money to put into them but the price is what's appealing...

Answer 1

Yes, if you have adequate liquid assets or cash available, if you need it for some unexpected repairs.

Also a home inspection and a good knowledgeable realtor will be quite helpful.

Good luck.

Answer 2

Im actually a first time buyer, just bought a short sale house. You have to look at a lot of things, how bad of shape it's in, is the price right, can you afford the repairs? Some are really bad some aren't so bad. In this market thats mostly what is out there. Find a friend who is handy and have them look at it. See it many times, find out what is owed and don't take on too much. Good Luck!

Answer 3

you also might want to be aware of the "short sale" home (house where the sales price was less than the balance due on the mortgage owed by the seller). you want to check and see if the property is in an area that is declining in value just to make sure YOU don't end up in a "short sale" situation or worse a few years down the road if you look to sell.

Answer 4

The reason that the price is appealing is that these properties generally need work. Many times you find no appliances, missing light fixtures and even worse. Banks sell these properties for what they can get. If you want something which needs no work, then be prepared to pay market values.

Answer 5

A short sale and a bank-owned property aren't the same.
It's never a good idea for a 1st time buyer to get involved in these things. If you don't understand the lingo, how are you going to deal with the myriad of legal minefields involved in these type of transactions?

Answer 6

If you qualify to purchase it, why not. A short sale only means that the seller and lender have decided to sell instead of allowing the foreclosure process to begin. It's a win/win situation for all concerned.

Answer 7

If you don't have the time or money right now to put into repairs, you need to ask yourself if the house's problems are something you can live with or something that will NEED to be fixed. If you can live with them until you get around to fixing them, go ahead and buy it, if that's what you want to do. If it's something that's going to suck up time and money you can't afford, I'd pass.

Answer 8

Depending on your area...It is definitely a buyers market we are seeing so many houses offered under appraised value. Shop around and get the best bang for your buck (newer house, updates, less taxes, good neighborhood etc)