1. Don't Try to Time the Market - The bottom of the market is not determined until months after it hits the bottom. This is not a realistic goal. A good buy is a good buy in any type of market.
2. Have Proof of Funds or Loan Pre-Approval Prior to Searching - A cash offer will often times win over a higher offer that requires financing.
3. Expect Poor Property Conditions - Most homeowners going into foreclosure neglect the maintenance of their home and the home can even become vandalized once vacated. Understand that you are buying a home below market value in exchange for adding some TLC.
4. Make Your Offer Immediately - Depending on the area, many foreclosures are moving quickly, partially due to investor demand. When you see the home you want, submit your offer right away. Some foreclosures will have multiple offers on them.
5. Offer a Quick Close - Once the home hits the market, the bank wants to get rid of it quickly. To make your offer more enticing, include a quick settlement. A quick settlement is one that takes place within 30 days from the acceptance of the offer.
6. Avoid Contingencies - Banks will avoid accepting offers with inordinate contingencies.
7. Inspect the Home - Once your offer is accepted, hire a competent home inspector to determine the repairs that need to be made to the home.
8. Be Prepared for Obstacles - There are many obstacles that may interfere from closing a foreclosure, from loan issues due to poor inspection to a slow and inadequate title company.
9. Examination of Title - When purchasing any distressed property, it is advisable to hire an attorney to review your title policy for added protection.
Darla Solomon, SFR
Short Sale & Foreclosure Certified
Real Estate Advisor
Cell: 561-676-0693 | Fax: 561-354-6001