-
Quick Tour
Connect. Share. Learn.Welcome to ActiveRain, the #1 social community for real estate professionals.- Explore the world's largest storehouse of real estate knowledge
- Access free training on ActiveRain University
- Share the experience of life in the real estate industry
- Grow your business through real estate blogging
- Blogs
-
Resources
Product Reviews Curious as to what others in your profession think about a certain product or tool? AR's community takes the time to leave honest and transparent reviews of their experiences so you can be a bit wiser about your purchase.
- Broken down by categories and subcategories for easy finds
- Get an unfiltered look at what real users are saying
- Leave a review yourself for others to benefit from
- Add new products as you use them and gain points for doing so
|
Bank owned properties have been a phase of real estate that my team and I do not handle. 
;)
;)
;)
Find MA real estate agents and Franklin real estate on ActiveRain.
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
© 2013 ActiveRain Corp. All Rights Reserved
24 Comments on It's A Slippery Slope To Sell Buyers What They Should Not Buy...
Excellent in-your-face and dead on correct. As a car guy I can tell you that there are any number of Mercedes Benz's and Audi's that were $60,000 to over $100,000 when new that you can pick up for $10-$20K used. They may look pretty great on the outside and be quite comfortable and swanky the day you buy them... but there's a reason they're only 20 grand now... that might only be 3 times the cost of your first big repair. You DO get what you pay for. If those bank owned properties selling for $200,000 were really worth $300,000, that's what the price would be.
Paul.....That's absolutely right..... the so called "deals" are not "deals" for everyone.... maybe investors or builders if it's a tear down.... slippery slope for everyone else....
Hi Barbara.
The perfect person will be a contractor who knows his/her business.
Joshua....that IS the perfect buyer for most bank owned properties.....
Barbara -- many buyers think they are going to get a substantial discount when purchasing a bank owned property -- simply not true in our market. Many of the true "deals" may be happening on the courthouse steps but not in the MLS.
It's been my experience that it is the rare buyer who can see beyond the ugly wallpaper and shag carpeting let alone some of the real issues that exist in a less than move-in ready home. Knowledge is definitely necessary to give to any home buyer in any real estate sale and especially so for the first time buyer and the REO transaction.
Michael....so many of them do not understand what they are buying.... many buyer agents just want the sale.... slippery slope....
Barbara, I have won out with getting 2 bank owned properties to work for the seller & having them fix issues that a lender would not lend on. Many agents don't know how to maneuver this slippery slope & it is not for the faint of heart because it takes months to get the repairs done & close...more often than not you better have deep pockets...!
Ginny..... not a good scenario for a first time home buyer..... most don't have deep pockets!!!
I'm always surprised when I show bank owned properties and the buyers complain about the condition. Even after showing 5 properties to the same buyer...they keep looking for that perfect place that no one else has found that's totally fixed up and going for half it's value. I see it as part of the learning curve.
My first question to prospective repo-buyers...Do you have 25k in the bank OVER AND ABOVE the cost of the home? Most want an REO property for pennies on the dollar that will also qualify for 100% financing.
This group is free to waste another agent's time and gasoline!
linda....it is part of the learning curve, but that lesson can be taught quickly with one showing of a bank owned property.... not a good selection for a first time home buyer....
Doug.... that's what it is....a waste of time....
Such an important thing for first time buyers to consider. Every buyer wants a deal and that's why so many of them think foreclosures. As-is can come at a hefty price in the long run. That's not necessarily a deal.
Chris Ann.... As-is can be a very expensive situation..... not for the average buyer....
We are finding that the BOP are in better shape than in years past and we always have an inspection as we well as let the buyer buy the home warranty. What are we missing, I have never had even an investor put 25 k in a BOP.
Hi Barbara,
I agree with some of what you're saying but, I also think there are exceptions in our area. We often get first time home buyers calling to see foreclosures or short sales. I'll usually show them the home they want to see but, have some very frank discussions about what it takes to be a buyer of a foreclosure or short sale property.
I always ask how handy they are and if they will have funds to make the repairs. I also make sure they have a home inspection prior to closing.
Most first time home-buyers realize those homes may not be for them. They often don't realize how damaged a foreclosure home might be in their price range. I always do what I can to make sure they know what's involved in purchasing any home.
There have been times it has worked out but, those buyers are equiped to handle such a property.
GOOD MORNING BARBARA! Gotta get the buyers away from just looking at the price - especially on REOs. Even experienced investors buying REOs find repair surprises - but are prepared for it!
Absolutely correct Barbara, there is a reason some REO homes appear to be priced below market and most buyers are not able to handle the potential problems that these homes may have.
I echo Carla's (#19) comment above. I'm currently working with a first-time buyer who is approved for a house in the $60,000 price point. Those simply don't exist in our area except for a few foreclosures, and those, quite honestly, are more likely than not structures that need to be torn down and rebuilt. Sometimes it takes awhile for the buyer to fully understand the work they are undertaking with any foreclosure; and sometimes they realize it's theh perfect option for them and sometimes not so much.
Barbara, I advice buyers about short sales and there are many questions that I ask them . The first thing they should know is that it may take months and they should have the option to continue their lease at current place on month tto month basis or move in with family.