Baytown Local Bank Owned Homes: Think Buying Opportunity

These days the words “bank owned homes” have become practically synonymous with a single word: “opportunity.”  With prices and mortgage rates this low, first time home buyers, investors and seasoned property owners alike are looking at a great many buying options unlike any Baytown has seen in a very long time. 

That option of buying a bank owned home has certainly opened a viable route for those looking to own a home at the fraction of what it cost just a few years ago. But not without a price:  the best Baytown bank owned home bargains are almost certain to fall into the ‘fixer-upper’ category.  Unfortunately, the better a home (less damages) the more the bank will ask in price.  It is important to realize that even at a higher price than fixer-uppers you will still get a great price, that is below the market asking prices.

When considering the purchase of one of our Baytown bank owned homes, I’ve found that my most successful clients have a few qualities in common:

-        patience – they wait until they’ve found a house that suits all their needs

-        prudence – they resist the temptation to take out too big of a loan

-        realism – they know how much hard work they will be willing to put into the house

Finding the right fixer-upper should be approached as a process: in other words, never buy the first home you see until after you’ve checked out some of its competition. There are more foreclosures on the market than ever – a phenomenon that works to your advantage. When you do find the right home, make sure to take out a loan that makes sense. Often people who are in a hurry to buy a house are tempted to take out a loan without giving enough consideration to its immediate and long-term implications (hard money loans, balloon type loans, ect).  Being coolly realistic as you work out the numbers will pay off for a long time.

Once a bank owned home is officially yours, the hard (often fun!) work begins. Buying a home in need of repair has always been the surest way to find a deal, but it is also the way to improve or develop home maintenance skills, bond with family members, and keep a tight rein on the family budget. Here, too, you need to be careful not to get carried away– you don’t want to over remodel or over build beyond what is appropriate for the neighborhood setting. In other words, keep your end goals in mind.  My advice to clients varies depending on their individual needs: Is it an income property?  Is it a flip property? Or the family home for the next 5-10 years? 

Foreclosures show no signs of slowing down in the near future, so this second quarter of the year’s buying market is opportune.  If you’re considering buying a bank owned

home in Baytown, call me today to go over your options and to put a plan into action!