Lee's Summit, MO Certified Foreclosure Resource Mark Gipple shares the top tips for home buyers looking to buy a foreclosure.
1. Be prepared for competition. Experts reports that foreclosures sold for an average of 27% below non-foreclosed property in 2011. Naturally, most Lee's Summit home buyers are looking to get the biggest bang for their buck, and foreclosures are a popular option. Buyers in today's market are also competing with investors who are looking to flip properties or rent them out. So far this year in Lee's Summit, the foreclosures that are priced the most aggressivly and are in the best condition are under contract within the first 14 days on market, and often there are multiple buyer bids on a home.
2. Have your financing in order before you begin your home search. Once you locate the Lee's Summit home you are interested in buying, it is likely too late to get your financing in place. You can't afford to waste time because competition is so fierce when buying a foreclosure. If you need a loan, meet with a reputable lender and get full loan approval- not just preapproval based on an online application, but submit your documents and send it through underwriting. If you are a cash buyer, have a letter of proof of funds available on a few hour's notice. These steps can give you an edge over other buyers in a multiple bid situation.
3. Make sure you factor in repair costs. Foreclosures are sold in AS-IS condition. Keep in mind that a $200,000 house with $50,000 in needed repairs is the same overall cost as a $250,000 move-in ready home... and a lot less headache.
4. Have a professional home inspection. I highly reccommend performing a thorough home inspection so you know what you are getting yourself into when buying a foreclosure. If you suspect there are problems with a certain area of the home, for instance an old HVAC unit, have a licensed professional in that trade do a specific inspection on that area. Your inspection period is an excellent time to have skilled professionals give estimates for repair too. When buying a foreclosure, it is critical that you comply with your inspection time frames, which generally give you 7-10 days after an accepted contract to conduct all inspections. This may be your only opportunity to get out of the purchase contract if you find out the condition of the foreclosed home in Lee's Summit is worse than you initially thought.
5. Just because it's a foreclosure doesn't necessarily mean it's a deal. There are many factors that influence the value of a home, including the desirablity of the community and school district, how many houses are for sale in the neighborhood, and how many foreclosures are there in the area. It's important to look at the big picture when deciding if a foreclosed home is a “good deal”.
If you or someone you know is in the market for a home and might consider working with a real estate agent and Realtor in Lee's Summit who focuses on foreclosures, contact The Mark Gipple Team today at 816-875-6250 or via e-mail at inquiry@interestedhomebuyer.com. Additional information is available at my website, http://www.welcometokc.com, where you can search all Lee's Summit foreclosures for free, and it is updated daily.
Let us aggressively represent you in finding and negotiating on your next home. There is never a cost to buyers for our services.
Mark Gipple
Keller Williams Realty
Certified Short Sales and Foreclosure Resource (SFR)
Certified Equator Platinum Certified for Foreclosures and Short Sales
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