"I'm looking for a foreclosure," the buyer said

Why are you specifically looking for a foreclosed home? If you are looking for a deal, that's fine; but you must know ahead of time that purchasing a foreclosed property is different in many ways than making a traditional purchase--so be prepared for the differences. Having said that, though, let me also say that it is the same in many regards. Foreclosures are almost always listed, just like other homes, so you need a real estate agent.

You need to have your financing in order, so get your pre-qualification letter now and start moving toward pre-approval on a loan. For a foreclosure deal, often you MUST have that pre-qual letter before negotiating an offer.

Now let's talk about that DEAL. Contrary to popular opinion, foreclosures come on the market at or near their appraised value. That may or may not seem like a deal initially. If most area properties are over-priced in MLS, then a foreclosure may be a deal right from the get-go, because it will be priced realistically or a little below market value.

Often, however, foreclosed properties BECOME deals after they have been on market for a time and then have been reduced in price one or more times. Institutional owners reduce their properties on a regular basis, and any property that remains on market will eventually become a deal. When a property hits that "sweet spot" price, it often sells within days. Most institutional owners are now trying to predict that "sweet spot" price immediately and then list at that amount, rather than listing at a "test the water" price point which is at or above appraised value.

When looking for a DEAL, don't overlook the motivated private seller. While some sellers can wait out this buyers' market, others have reasons that they must sell. Those sellers eventually have to lower their properties to the DEAL stage, and those houses will almost always be in better condition than the typical REO. Those sellers may also be prepared to cope with "predications" that usually go with FHA and VA loans. The typical REO seller will not take a contract that may end up with predications. Predications are lender-required repairs that usually have to be made prior to closing.

In short, you need an agent to help you watch the market. DO NOT, and I repeat DO NOT, pay a membership fee to some webpage in order to get a list of foreclosed properties. All of that information is available to you free. I am an REO agent, by the way. You are not in my service area, so I have no reason to mislead you in any way. Get yourself an agent, not a membership of any sort!