As you've probably noticed, some bank owned homes are real values, while others are less so.

It's commonly assumed that bank-owned homes are a real steal and one should run out blindly and buy it, but that's not always the case.  Although it's true that banks are motivated to get these homes off their books, they treat each transaction like a business and do their best to minimize their losses. 

Additionally, under the Canadian Bank Act the Lender is obligated to attempt to get fair market value for the property.

When considering buying a bank-owned home, you need to be as prudent as you would be in any big purchase.  Be sure to check comparable homes for sale and make sure you are getting a good buy, taking any costs to remediate into consideration.

We run comparable reports for our buyers before they make an offer, whether it's a typical sale or a distress sale.