Must Do’s to Buying a Foreclosure

By
Real Estate Agent with Realty Associates

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

Realty Associates

Cell: 561-676-0693 | Fax: 561-354-6001

www.realestatedriven.com

Comments (8)

Randy Ostrander
Lake and Lodge Realty LLC - Big Rapids, MI
Real Estate Broker, Serving Big Rapids and West Central MI

Good list of tips Darla. Everyone sees on HGTV how easy it is to flip and sometimes forget the hidden dangers to buying foreclosed properties. This list will help.

Apr 04, 2010 06:43 PM
Abraham Valentino
SOLARIT® - San Francisco, CA
Founder CEO SOLARIT®, iMetros, Nummus®

Great post, thanks

Apr 04, 2010 08:03 PM
Jason Rose
123 ConEd LLC -- Michigan real estate continuing education - Farmington Hills, MI
www.123ConEd.com

Welcome to ActiveRain, Darla, and congratulations on your first post! I hope that you'll enjoy this great website as much as I do.

Jason

Apr 05, 2010 06:40 AM
Keith Elliott Jr
KEIRE Realty Group - Manassas, VA
Principal Broker/Owner

Hi Darla,

Welcome to Active Rain and congratulations on your first post! The opportunities to learn and network are incredible here.  Best of luck to you!

-Keith

Apr 05, 2010 04:25 PM
David Northup
David Northup - Aim RE Group Inc, Temecula Realtors® (AIM) - Murrieta, CA

Hello Darla!

Congrats on your first post and welcome to the Rain!

Take a minute to check out this group http://activerain.com/groups/newbies and this Official Blog post Active Rain Community Resources . They should help get you on your way.

To get the most out of your AR experience remeber the following:

  • To accumulate points on AR your post must be 50 words or more
  • "Long Tail keywords" & Tags will get you more "Google juice"
  • Be sure to post to appropriate channels, categories, groups, etc.
  • Have Fun!!

All the best.

-David

Apr 06, 2010 03:33 AM
Katerina Gasset
Get It Done For Me Virtual Services - Wellington, FL
Get It Done For Me Virtual Services

Great list Darla! Welcome to ActiveRain. This is a great place to learn anything you need to know about the real estate business or about getting the most out of blogging and marketing yourself on line. If you have any questions just stop by my blog. I am an Ambassador so I am here to help you get the most out of ActiveRain.

Have a great weekend!

Katerina

Apr 09, 2010 01:07 PM
Letitia Stevenson
BHHS Fox & Roach | www.DelawareValleyRE.com - Greenville, DE
Listing Agent DE/PA/MD, Digital Marketer & Coach

Darla, Welcome to Active Rain! Active Rain is a great place to share your knowledge, expertise and thoughts, as well as network and learn so much from the vast pool of talent already onboard.

Welcome Aboard and Much Success!

Jun 22, 2010 03:21 PM
Paul Gapski
Berkshire Hathaway / Prudential Ca Realty - El Cajon, CA
619-504-8999,#1 Resource SD Relo

thank you very much for the informative and interesting post. I get so much out of the active rain network.

Apr 11, 2012 12:27 AM