Buying Prescott AZ Bank Owned Homes, What's the conditon?

Home buyers have many different ideas about buying bank owned homes. The two I hear most often relate to what its like dealing with banks and what to expect with regard to the condition of the homes. I wanted to write about the second question.

Here in the Prescott Arizona REO market we see a wide variety of bank owned property conditions from pristine to "ready for demolition". But most bank owned properties are in average to very good condition. Homes that have been damaged by the former owners usually receive necessary repairs by the bank before they are marketed. An early part of the process in the pre-marketing time frame is the broker price opinion (BPO). The BPO consists of trained agents comparing the subject property with similar properties in the same area that are currently listed and those which have recently sold. Needed repairs are also recommended by the BPO agents.

Common repairs include damaged drywall, carpet and paint. Landscaping is sometimes neglected for months prior to a foreclosure. Another common situation is the partially completed remodel. Owners begin a large project and run out of money before they can finish. That situation is a speacil challenge for the bank since they really don't want to put more money into an asset that is already costing them thousands.

The last type of damage is intentional. In our local Prescott AZ market, we occasionally see homes in which all the fixtures have been removed. Every door handle, hinge, light fixture and appliance are removed. Fortunately for the Prescott AZ bank owned home buyer, there are plenty of high quality homes available which are in great shape.

Dave Conners is part of the Stephanie Woods Team specializing in Prescott Area REO Homes.