Daily Real Estate News | July 9, 2008
Tips for Buying Foreclosures
Buyers seeking a deal on a foreclosed property need to keep some basics in mind because the transaction isn’t simple and the competition may be stiff, says Pat Lashinsky, CEO of ZipRealty, which has more than 2,200 associates in 19 states.
“When you find a good deal, there are five or six or seven offers, and you’re up against professional investors,” Lashinsky says.
Here are some other things buyers should consider:
- These homes aren’t giveaways. Typically, they are priced 10 to 15 percent below non-bank-owned properties.
- Banks have their own selling strategies. Skilled at analyzing prices and market conditions, they’ll often lower the price incrementally if a home hasn’t sold after a month.
- Bidding Wars are Possible. When the price is attractive, expect plenty of competitive offers.
- Factor in fix-up money. Many of these properties are in bad shape.
- Get pre-qualified. Banks won’t deal with prospective buyers who aren’t.
- Consider borrowing from the bank that owns the property. If the bank can hold the mortgage, it will sometimes agree to a lower price.
Source: San Francisco Chronicle, Carolyn Said (07/09/2008)
And here’s another tip that can save you time and aggrevation. Seek the help of a local Realtor(R). This year’s extremely active foreclosure market has produced many well qualified and experienced agents willing to help a buyer navigate the foreclosure minefields. Furthermore, lenders are always pleased to deal with a realty professional who knows the foreclosure ropes. So, if you’re a serious foreclosure buyer, do yourself a favor and join up with an experienced buyer’s agent. You won’t be sorry.
Do you have realty questions? Do you need home buying or selling advice or assistance? Do you need mortgage loan advice? Look to the SanAntonioHomeQuest.com Realty Solutions Team to answer all your realty questions. Our never ending goal is to serve you exceedingly well.
Our team members are Randy & Stephanie Kelley & Tara Kelley-Guariglia, Realtors® at Keller Williams Legacy, telephone toll free (800) 201-9145, or (210) 867-8743 for Stephanie, (210) 863-2661 for Randy, and (210) 792-8726 for Tara.