October 23th, 2010
By Brian Scott
If a property reverts back to the bank, what is the advantage of buying one of these properties? Doesn't this just mean that nobody wanted to pay the opening bid on the property because the house is over-valued. The short answer to this is yes, but the long answer is where you can make your profit. First off, all banks are in the business of money, not real estate, so when it comes to pricing houses to sell at foreclosure or at short sales they are behind the curve on what the current market value of the opening bid needs to be.
As more and more properties revert back to the banks however they are slowly starting to catch on. After the banks get these properties back they realize that the reason why these properties didn't sell is that they are A) overpriced for the current market, and B) need work done to sell at market price.
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