How to buy a bank owned home in Metro Denver, Colorado
100 Real Estate Tips in 100 Days (Day 48)
Denver, Colorado and the suburbs has an inventory of bank owned homes, also called REO’s or foreclosures. Buyers often express an interest in purchasing a bank-owned home for the DEAL they think they will get.
Assuming all bank owned homes are a good deal is a huge mistake. I think the consumer often looks at the COST of the home and equates it with VALUE. Nothing could be further from the truth.
The VALUE of the home is determined by the market. The market consists of buyers and sellers. Therefore the true VALUE of a home would be determined by the price other like homes are selling for in the market.
Hearing real estate tips from someone other than myself is always beneficial. In this video Ted C. Jones – Chief Economist for Stewart Title explains some very value insight on buying a bank owned home in Colorado.
Ted’s advice is spot on! Buying a foreclosed home based on the previous cost of the home is not the way to begin. As he suggests, the best way to begin is to work with an experienced agent who can bring actual home sale statistics to the table for you to review is the first step.
The next step is up to you, are you going to call me now or later?
Credits: Colorado Springs Home Connection and Bill Lublin Philidelphia Realtor® for directing me to this informative video. Nice work folks!
About the Author
Kristal Kraft
Kristal has been helping buyers and sellers in Colorado since 1984. She enjoys sharing her knowledge of the Metro Denver Real Estate market via blogging and in person while driving around the beautiful Rocky Mountain town of Denver! For fun, Kristal enjoys shooting things with a Canon. Visit Denver Photo Blog
Kristal Kraft
2 Comments
Hi Kristal,
As a provider of Luxury Foreclosures and Luxury Short Sales in South Florida, I was wondering if you were experiencing something similar in Denver…We are seeing more strategic defaults and strategic short sales in our area. We are also seeing bidding wars on properties that are either in good condition or in good areas. Investors are swooping down and picking these properties up for cash. Is the market in Denver going through a similar experience?
Gia
You are right Krystal some of the bank owned homes on the market are not the best deal when you factor in all the money it will take to get them fixed up. Many buyers really under estimate the costs that go into really making a place look half decent!
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