Fixer Upper

Are you one of those people who dreams of buying a fixer upper? If you're a home-improvement lover, the idea can be irresistible. You think that if you could just find a rundown place in an otherwise great neighborhood for well below market price and renovate it, you'd end up with a like-new house that's worth more than what you paid for it. Sounds like a fairy tale? Well, maybe not. In a down turned economy, finding that fixer upper house is easier than you think, thanks to bank owned property, or Real Estate Owned (REO) homes.

Due to unfortunate economic circumstances, many home owners are being forced into foreclosure and losing their homes to lenders. These vacant homes represent lost revenue, so banks are often eager to unload REO homes at a discounted price significantly lower than the current market value prices. These properties are often in need of repair and create a great opportunity for home buyers looking for fixer uppers.

How good of a deal are we talking about? Bank owned homes are usually priced lower than the original loan amount, because they exclude expenses such as attorney fees and interest. Plus, lenders will pay for back taxes, liens and HOA fees owed on the home. Lenders take care of the eviction of former homeowners, and buyers have immediate access to the home for inspections and appraisals. It's much easier to negotiate a better price for repair costs and closing costs for your fixer upper house with bank owned real estate.

Here are just a few tips to consider when you're buying a fixer upper: Remember to thoroughly assess the home for repairs, get a walk-through with a contractor who can give you the estimated cost of your home improvement bill and make sure that your fixer upper is in a relatively good neighborhood. As they say in real estate, it's still all about location, location, location.

Now's the time to take advantage of the ridiculously low prices of bank owned property. Your fixer upper house is not such a long shot, after all.