So you've heard that bank-owned deals are just too good to pass up. And in many instances, that is true. But if you've heard that bank-owned homes in our area are selling for 50-cents on the dollar, well that's not really the case. (They may be selling for 50-cents on the dollar from what the previous buyer paid - but not half-the current market value!) Here's the REAL STORY on bank-owned homes in our area. They are selling within 96% of list-price so low-ball offers are generally a waste of time. And if a house has been on the market 14 days or less, many banks will not even look at the offer if it is not full price. The average days on market for a bank-owned house is 28 days so they really are selling, despite what you are hearing. And 51% of bank-owned (REO or real estate-owned properties) are selling for cash - only 20% are being sold to FHA buyers. So investors are still king when it comes to REOs.