Buying a house under market value in Plainfield and Naperville is easy if you know what to do, and what to look for.
There are a lot of opportunities to purchase a Plainfield or Naperville under market value if you work with an agent who understands these situations. The biggest thing to keep in mind when entering the market of under valued homes is knowing when to make a move, and being ready to do it.
Here are just a few of the reasons why you might be able to find an home under market value in Plainfield, Naperville or anywhere in Chicagoland.
- Pre-Foreclosures as short sales! They are everywhere, in every neighborhood, all over the Chicagoland area. Most of these homes are still in great condition because the owners still care about their home, and are looking for a way out of their situation by working with their lender to be able to sell the house for less than what they owe. If the loan is federally insured as an FHA loan it's almost a slam dunk that they will take a net offer of 82% of the homes currently appraised value. If it's a conventional loan, a successful short sale can save you anywhere between 60-70%. Offers "subject to bank approval" are a the mercy of the lender, but they can be an amazing way to save some cash on your next Plainfield or Naperville home.
- Divorces make for liquidation sales. Imagine the motivation of two sellers who's main goal is to cut all ties from one another as quickly as possible... There aren't many sure fire ways to seek out these situations, but it's a good thing to keep in mind when making an offer on your next house. Make sure you're working with Naperville or Plainfield Realtor who is willing to dig deep into the reason of why the sellers are selling. Their answers will tell volumes about the motivation behind accepting an offer and how they will negotiate.
Vacant houses on the MLS. A vacant house is either a "holding cost" for an investor, or a non-performing asset to a bank. Either way, they scream motivated seller! As I mentioned before, working with an Illinois Realtor who is willing to ask questions and dig deep about the reason the house is on the market, will ALWAYS give you the upper hand in the negotiation process.
- Job transfers. If the job transfer did not include the services of a RELO company, you are most likely dealing with sellers that are eager to reunite with a spouse that had to "go ahead" without them. Occasionally they are making two house payments, but at the very least, they are almost always paying for alternative living expenses. (and if a mom who has suddenly finds herself as a single parent has anything to do with the negotiation process, you'll be moving in faster than you can say "escrow")
- Bank owned or REO properties. These are houses that the bank wasn't able to sell at the auction. In situations like this the bank has borrowed money to the former owner, and when the owner lost the home to foreclosure, the bank took back the house as a collateral per the terms of the mortgage note. Most of the time these houses need varying degrees of repairs. Make sure you are ready to factor the cost of the repairs into the final fair market value of the home to make it worth your while. If the house is selling for $25K under market value and it needs $35K in repairs, it wouldn't make much sense to rush to the closing table on this one...
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