It's become a lot easier to find foreclosed homes. It once was that you had to visit the courthouse and comb through extensive legal files to locate homes that had been foreclosed on. Today, many banks are utilizing real estate agents to sell their foreclosed properties, and such properties can be found on realtytrac.com, foreclosurepoint.com or in special sections of the local MLS websites. However, the fact that a home has been foreclosed on may not necessarily be highlighted in the description. Some brokerages, such as Archwood Properties, specialize is identifying foreclosed properties and can provide you with the information that the above-mentioned websites don't always include.
It's best to buy a foreclosed property from a bank. If you buy a foreclosed home at an auction before the bank repossesses it, you'll have to pay in cash, and you usually cannot inspect the property. You may also later discover that there are liens against it. When a bank takes back a home, however, it will clear any outstanding liens. Plus, when you buy a bank-owned property, you can inspect it beforehand, and you can finance the purchase with a mortgage. Leave your suitcase full of cash at home.
Bring in a contractor before you buy. Many foreclosed homes have been abandoned, some even vandalized, and they often require major repairs. One mistake a lot of people make is underestimating how much work it needs and the cost. To avoid getting stuck with a surprise bill, ask your Archwood Properties realtor to refer you to a knowledgeable contractor. Contractors can give you an estimate of how much the restoration will cost and how long it will take. Many will do so for free in hopes of winning your business.
Bid low! Banks aren't necessarily selling foreclosures at fire-sale prices; some are listed at market value, so be prepared to haggle. The bigger the inventory of foreclosed homes the bank has and the longer the property has sat, the greater your chances of nabbing a great deal. Your Archwood Properties agent can gather current market information to better assist you in figuring a strong bidding point. Set your initial offer about 20% below market price, or even more if your area has a lot of foreclosures.
Be prepared to wait. While some lenders are getting back to bidders within 36 hours, others are dealing with an enormous backlog that can hold up their response for as long as three months. While you wait, someone can trump you with a higher offer. To boost your chances at scoring a home you love, have multiple properties in mind, and get your financing pre-approved before you bid. Even if the lender says it has another offer, follow up every week - these deals can often fall through.
Interested in exploring the foreclosure market? Contact us today: info@archwoodproperties.com or call 214.505.9420.
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