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Author: footsox Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 13953  
Subject: Buyer's Premium on Bank owned home? Date: 1/9/2013 2:05 AM
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After much looking, we have finally found the perfect house that we think we can turn into a rental house as an investment. This is a bank owned home - not a short sale. The bank is who owns the house and that is who we will be dealing with to make an offer.

We put in an offer late this afternoon with a realtor to make a bid on the property. We left his office and he then went to enter this offer online (which is how this bank had requested that offers be submitted.) He called us after we arrived back home and said that, according to their website, they said there would be a "Buyer's Premium" on any offers. This amounts to $3600. We agreed that we would be able to pay this, as we are getting a great house and offering a good price, so we agreed to it.

My question is - Is this normal on a bank owned property? I understand it might be normal on a property at auction. This is not an auction. I am just looking for any info on this. My first reaction was to walk away from this deal, but to be honest, this is a really great house, ready for tenants with minimal repairs, and we have been looking for months and we KNOW this is a good deal - even WITH the buyer's premium added on. I was just wondering if this is "normal" on a bank owned property or what. Thanks.
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