The Secret to Buying Repossessed Homes
Aug 3rd, 2006 | 6 Comments »If you’re looking to purchase a new home but can’t find a property you can afford while searching the houses for sale in your area, you may be over looking the bargains offered by bank repossessed homes.
In recent years Property Prices have increased sharply and rising interest rates are driving up the costs of home ownership, for this reason buyers are having to wait longer to find a home in their preferred areas, which they can afford.
The demand for bank repossessed properties has meanwhile been increasing. A repossessed home offers buyers a cheaper alternative, and you can find quite a few bargains in the property Repo Market.
Here;s what everyone should know about buying a Bank Repossessed Property:
On average Bank Repossessed Properties are sold at a huge discount and since banks are keen to find buyers they’re often prepared to relax their lending criteria, making home loans for Repo houses more accessible.
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When buying a Bank Repossessed house you don’t pay any transfer costs, although you are still liable to pay the attorney’s fees for registering the property in your name.
Another advantage is that Transfer is often much quicker, leaving you more time to do any renovations before you actually move in.
Buying a bank repo has many advantages but there are also many disadvantages, click here to find out how you can secure a Cheap Repo Property and avoid the common snags.
Also make sure you get a Home Loan Pre-approval from PropertyLoans.co.za, before you begin browsing the latest list of Bank Repossessed Properties in South Africa.
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August 16th, 2009 at 3:52 pm
Well i am a first time buyer and have been trying to buy a house from FNB which i was told is one of the 2 best banks to use,and Standerd Bank are the other. Up to date i havent even had one phone call from them in regards of my offers for PIP houses. Most banks welcome home buyers knocking on their doors looking to buy repossessed homes. It seems that FNB dont need bussiness. Is there anyone at standerd bank who i can contact in regards of PIP houses, and a possible purchase?
September 10th, 2009 at 8:06 am
It is untrue that there are no transfer costs. In each and every transfer of property, there are ALWAYS transfer costs. Transfer costs=Attorney Fees.
November 11th, 2009 at 9:25 am
Hi, I have bought a repo house and its a nightmare, cause I bought the house last year November and I have not been able to go in the house.
Because, the seller can’t evict the occupants even though they have a court oder. The sheriff refuses to go to the township.
Sometimes its not ideal to buy a repo house.
November 12th, 2009 at 3:33 pm
@Ernest Thanks for sharing your experiences. I hope you situation gets better and that you will be able to enjoy the fruits of your property investment.
I would advise that anyone who wishes to buy a repo house, checks that there are no tenants currently living on the property.
The best way to do this is to visit the property yourself, as the bank employees are no always sure about this.
February 17th, 2010 at 3:47 pm
I have been trying to buy a repo home for 8 months and just before we clinched the deal it seems like a FNB employee got his hands on the home i was going to buy!!!!!!!!!
February 18th, 2010 at 1:54 pm
@Pieter Du randt, thank-you for sharing your comment.
Usually what happens with these repo properties is that once an offer is made and accepted, the bank will reserve the property which should block any other buyers.
As we are not involved in this transaction, the only advice I can give is to submit a complaint directly to FNB.