This may be a weird headline with all the news about foreclosure. Here is what you need to know about bank owned property.

The average discount on bank owned property is 26%. That means for every house sold by the banks after the initial auction which no one bought at is selling 26% below market value.

Lets do the numbers: $200,000 home that is in decent shape, lets say it just needs cosmetic $5000 worth of repairs. We take the $5000 off the price and multiply $200,000 by 74% to get what you will pay for that home. That is a price tag of $144,300, which gives you a $55,700 discount on the home. This is the time to buy because that is the average if you really know how to buy or negotiate you could get 50% or more off the price of a piece of property.

Bank owned property also has all the tax liens or title issues cleared up when you buy. This will prevent a lot of headaches and makes buying bank owned easier.

The easiest way to find bank owned property to buy is to contact a local realtor that list bank owned property or you can have a realtor just email you a list from the MLS every day. This is what I do when looking for great deals in the city I am located. I get the emails and look through them at the properties that fit my criteria for area and price. When I find the properties that fit what I am looking for I will take a look inside, based on the inspection I will negotiate to get the price down.

I just negotiated a bank owned property from $39,900 down to $25,550. They accepted my low offer immediately which told me I should of went lower on the price. What if I just took their price and did not offer a lower price then what they listed the property for. Always go low when making offers you can come up on price but usually never lower once your initial offer has been made.