The Century 21 Real Estate bank owned foreclosure list provides nationwide listings of discounted properties. Each property is owned by various lenders and priced below market value to entice a quick sale. Although bank owned homes are discounted, they generally require some level of repair.
As with any property investment, homes presented through the Century 21 real estate bank owned foreclosure list should be inspected and appraised. Offers are presented to assigned Century 21 realtors and passed along to the representing bank. Lenders then determine if they will accept, reject or make a counter-offer.
The primary benefit of buying bank owned homes vs. foreclosure homes is the real estate is sold with a clean title. When properties are sold through foreclosure auctions they often have creditor judgments and tax liens attached. In some cases, evicted homeowners continue residing in the home.
Buyers must negotiate with creditors to obtain lien removal and are responsible for commencing with eviction. Once the bank regains ownership, they take measures to remove liens and evict homeowners or tenants.
The primary disadvantage to buying bank owned homes is lenders are rarely eager to enter into price negotiation. When banks initially commence with foreclosure proceedings they place properties for sale through public foreclosure auctions. If the real estate does not sell at auction it is returned to the lender and becomes part of their investment portfolio.
Banks are in business to make money, not manage real estate sales. Lenders need to sell toxic assets in order to maintain their line of credit through the Federal Reserve Bank. Since lenders incur substantial financial loss during the foreclosure process, they need to sell the property at or slightly below its appraised value in order to break even or minimize losses.
With that being said, Century 21 foreclosure real estate can be a great place to start when looking for a primary residence, vacation home or investment property, as long as buyers engage in due diligence.
Bank foreclosures are sold in as-is condition and buyers are responsible for repairs and renovations. Buyers should obtain property appraisals and home inspections to determine accurate property value and estimated repair costs. If major problems are revealed during the inspection, prospective buyers can use repair estimates to negotiate the asking price.
Many home buyers and real estate investors utilize broker price opinion appraisals to reduce initial costs. Two types of broker price opinions are available and include internal BPO and drive-by BPO.
As the name implies, drive-by BPO means brokers drive by the property to obtain information about the neighborhood, lot size and exterior condition of the home. With internal BPOs, brokers enter the home to take room measurements and examine the home’s interior.
In order to place an offer on Century 21 bank owned foreclosure properties buyers must obtain preapproved financing and provide proof of funds with their property offer. The exception to this rule is if buyers plan to purchase the property with cash.
Century 21 bank owned foreclosures include a wide variety of residential and commercial real estate. Many properties are priced below $5000. However, the average listing price is approximately 10-percent below market value compared to other homes on the market.
One option to purchasing bank owned foreclosures through Century 21 or other realtors is to seek out private real estate investors who specialize in buying and selling distressed properties. Some investors buy bank owned real estate portfolios consisting of multiple properties. Buying in bulk allows investors to purchase properties at wholesale prices and pass their savings along to individual buyers and investors.