Although a tedious process, many buyers are drawn to foreclosure sales because it is known to be the bargain price in the housing market. Statistics back that up. Distressed sales range from 20-40% less than a non-distressed home. With the appeal in the market, buyers must also take heed of what they are facing when they set out on a distressed sale search.

Here are three tips to help you navigate!

Focus on REO’s. Avoiding short sales will keep the process from getting too lengthy with the infamous negotiations associated with short sales. REO sales are more similar to traditional home sales. "A bank isn't emotionally attached to a REO; it's just looking to recoup as much of its losses as possible," Blomquist told Business Insider. "So the lender is often more willing to capitulate on price."

Do Not Forget The Inspection. Many distressed sales are sold ‘as is’ and with the purchase of it, the buyer will inherit the multitude of problems if the buyer is not careful. Getting an inspection will allow buyers to have a list of issues along with estimated costs of repair so that they can then make the best decision and possibly negotiate a lower price on the home.

Do Not Expect Instant Appreciation. Just because a buyer gets a home with a big discount, this does not imply appreciation will rise right away. Being educated about the market will help to set reasonable projections on the shifting value of your home.

 



If you have questions and need help in the current market, connect with me. I have investment and market experience for Bozeman, Big Sky, and surrounding areas.

 

http://realtormag.realtor.org/daily-news/2011/11/02/buying-foreclosure-3-things-consider

 ATHOMEINBOZEMAN
  

 

2 Comments on Tips on Foreclosure Buying

NOV
10
2011
138,101 Points

Too bad many investors now a days think that the word foreclosure means free or there abouts..
5:22pm • #1
NOV
23
2011
Outside Blog

Yes, agree in many cases and our foreclosures are not always priced significantly below the current market.   Tim
12:17pm • #2


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Tim Hart

Tim Hart

Bozeman, MT

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At Home In Bozeman

Address: 2101 Durston Suite #4, Bozeman, MT, 59718

Office Phone: (406) 570-5730

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