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Tips For Buying Foreclosure In Monterey

By
Real Estate Broker/Owner with DeLuca Real Estate CaBRE#01364722

Foreclosures For Sale In Monterey California

 

Pebble BEach

 

Do you want to know what to expect when buying a foreclosure?  read on....

Expect your escrow to run long, expect multiple counter offers, make sure you take all of this into account when working with your mortgage broker.  Make sure you can adhere to strict timelines.  Be pleasantly surprised if all goes smoothly and you can close in 30 days.

Understand that when buying a foreclosure, THE BANK WILL NOT TAKE A LOW BALL OFFER!  Banks owe their shareholders and investors a duty to get as much as they can for their assets.  Just because it is listed as a short sale or a foreclosure does not mean you can purchase for less than market value.  The banks goal is to get a purchase price as close to market value as they can.  This is determined by the sale price or similar properties in the last 90 days or so.  I have to counsel buyers every day on this.  I don't want you to be disappointed and lose out on a great property because you are not educated on how this all works. 

 

monterey, ca

HOW TO AVOID DRAMA:

Work with your REALTOR to make a realistic offer based upon recent comparable sales in the neighborhood, not just what you think you can "get it for" or what you can afford.  If the property is worth much higher than you are qualified to purchase...move on to something within your price range.  You can waste alot of time, spin alot of wheels and lose out on properties you are capable of purchasing if you keep making lowball offers.  Believe me it does not work, even on distressed homes.  Sit down with your broker or agent, review the comps from all angles, their side and your side, and make a smart offer that reflects a good value for you, and is within fair market of the property.

BE REALISTIC:

It is what it is...this is the price you pay to buy from the bank.  There are always Addendums that the bank give you to sign...they are confusing, they are all in the banks favor, they are intimidating, but if you want to buy a bank owned property, you have to sign them.  It is unavoidable.  Working with the bank on the bank's terms is par for the course.  Include the expectation that the bank will expect you to follow the guidelines and time frames, but they don't have to.  Make sure you read everything before you sign it, respond in a timely manner to the bank's requests and know what your obligations are under the contract.  Don't lose on a technicality because you did not read the fine print.  

IT IS A REALITY:

Foreclosures are here for awhile, they are attractive to purchase, but setting realistic expectations and understanding what your rights and obligations are it key to success.

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