As you can see from the title, in today’s blog post we are going to be talking about bank owned condos and houses in Myrtle Beach. There are a lot of questions surrounding this topic, and we hope to answer some of these in hopes to show you the many benefits that can come from purchasing a bank owned property. It is always good to keep your options open when starting the search for a new home in Myrtle Beach, and we hope we can shed some light and help you make a decision if these properties are the right fit for you and your family.
What does it mean if a condo or house is ‘bank owned?”
When a condo or house is bank owned, it means that the bank has foreclosed on the property. This means that the owner of the condo or home defaulted on the loan, leading to legal actions and proceedings from the bank against the owner to seize the property in repayment of the mortgage debt. There are also other times where the borrower will give the bank the deed for the condo or home in lieu of proceeding with a foreclosure, which is referred to as duration. The bank will sometimes accommodate this request from the borrower if they find that there is sufficient equity in the property in hopes to avoid a large loss for the bank.
Are bank-owned condos and houses a good investment?
These properties have the potential to be incredible investments! For one, many banks are looking to get these condos and homes off their backs. This affords you the opportunity to snag a property in Myrtle Beach (potentially) under market value! And if you are to do any repairs or upgrades, this will make the condo or home worth more if you ever decide to sell it in the future: cha-ching! And with the secret of Myrtle Beach out, the area has become such a desirable location for residents and visitors, and you should therefore not have much trouble finding an eager buyer who wants to enjoy the many benefits South Carolina has to offer.
On that topic, bank-owned houses and condos can also be a great investment property. Buyers can potentially purchase the property at a lower price, making the barrier to entry in the investment property market fairly low. And again, with Myrtle Beach being such a desirable location within the country (what, with incredible beaches, weather, shopping, dining, entertainment…. Okay we will stop bragging now) you will always have someone interested in renting the property – whether it be a full time rental or more sporadic with out of town visitors. Either way, bank owned condos and homes have the potential to become incredible investment properties for those interested.
What are the benefits of purchasing a bank owned condo or house?
There are many benefits that can come from purchasing a condo or house that is bank owned. As we spoke about earlier, one of them is price. Banks are usually wanting to get the seized properties off their books quickly, which can prove to be a huge benefit for you as they have the potential to come down drastically in price. Is there a neighborhood or part of town that you have been dreaming to live in but simply can not afford? Would you love to live near the glistening Myrtle Beach water but the price tag is too hefty for your budget? Or maybe you are just looking for more square footage for your growing family. We see these all the time from clients.
Well luckily for you there is a potential for a bank owned property to be available in these neighborhoods or parts of town that can check off everything on your wish list and fall in your ideal price range. What we are trying to say is that bank-owned condos or homes give people options. A property that would, under normal circumstances, be completely out of your search criteria all of a sudden becomes tangible for you and your family.
Another benefit to a bank-owned property is the potential to customize the home or condo to your taste and preference if you plan on doing any repairs or upgrades to the property. Since some of these properties need a little tender loving care, you are able to pick out things such as paint color, finishes, flooring and window treatments. It gives you an excuse to make the home your perfect sanctuary and have things just the way you want them. And while some people may only see a hefty price tag with these improvements, we tend to look at the glass half full and think of it as a terrific opportunity. Also, you probably were able to get the condo or home at a lower price which leaves some funds to put towards these projects. It truly is a win-win!
Are there any cons of purchasing a bank-owned condo or house?
As with most things in life, with the good comes the potential for some drawback. When it comes to buying a condo or house that is bank owned there are some things that we want you to keep in mind. Because bank-owned properties always have the potential of being vacant for some time before new owners move in, the home may need some repairs. Things such as new paint, pipes, and air conditioners may need to be purchased and installed. And with that comes the potential for costly bills with your name on them. On the flip side, as we mentioned earlier, this can also be a fun way for you to put your own touch on the property to make it reflect your taste.
Prior to closing, it may be a good idea to hire a trusted inspector to ensure there are no surprises after you close on the condo or home. You can also make the contract “contingent” for a few days or at least until you are able to get an inspector out to survey the property. And while the bank more than likely will not fix anything that needs to be repaired, again it alleviates any large potential surprises, and also may give you a little negotiating power in the deal. We want to make sure that you do not let the excitement of purchasing a home overshadow the due diligence and inspections that may need to be done. Our team is here to guide you and think of the things that you may not have. And we are happy to do it!
What should I do if I am interested in purchasing a bank-owned condo or house?
We hope this blog gave you a little more insight into the world of bank-owned condos and houses, but we are sure that you more than likely still have some lingering questions or questions that were sparked from this post. That is where we come in! Call our experienced team here at Jerry Pinkas Reality to answer any questions you have and help figure out if purchasing a bank owned condo or house is the best route for you and your family. We have helped many people go through the process of purchasing properties that are owned by the bank and we are confident we can do the same for you. We are looking forward to hearing from you today!
You have questions, we have answers. Give us a call at 843-839-9870
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