Today, let's look at five more tips for buyers who are looking to or in the process of purchasing a bank owned home in their local real estate market.

First of all, many buyer's are surprised to learn that banks will not negotiate that much when it comes to the listing price. The idea of sending over a "low ball" offer and having the bank accept it is a common one with buyers. The reality is the bank has had a BPO (broker price opinion) done on the home. If the BPO came in at $200,000, they will not arbitrarily agree to sell it for $150,000. This does not mean you can not get a "good buy." Just know that "low balling" the bank generally does not work.

Secondly, bank owned homes do not always mean the best deal. There may be other options for you in the retail market that are just as good or even better buying options. This could mean also a short sale. Know that short sales can be a great buying option for a buyer, however, they generally take months to get approved at the bank. If you are on a tight timeline, a short sale is not the best route for you to go.

If you purchase a bank owned home, have your real estate agent guide you through all of the various bank addendums. Read the fine print! Know the dates for various contingencies you may have (inspection, financing, etc) When in doubt, hire a top real estate agent to help you out. Banks can be notorious for having provisions of the contract that are in their favor.

Fourth, if you purchase this type of property, know who will get stuck paying any taxes or assessments. This too will be in the purchase agreement. This will help you evaluate how good of a deal a particular home may be.

Lastly, is the illusion of getting a great deal on a property worth the headache you may have in the buying process? It very well could be. There is certainly no doubt that there are opportunities to buy outstanding bank owned homes for sale at great prices. Just don't give in to the idea that the process will be entirely easy.