Looking for a foreclosure, bank-owned or short sale but need to be able to live in the home immediately after closing?
Good news is that foreclosures are no longer always trashed, fixer-uppers. Today's foreclosures can be simply AWESOME! This economy has forced builders and responsible homeowners alike to let amazing properties go back to the bank. Many are still in pristine condition. Some still may require a bit of cleanup or a few cosmetic changes but there are many in move in condition too.
AND, not all bargains are foreclosures either. Some traditional homeowners have sharpened up their pencils and priced their homes to compete with the banks! These homes are often in move in condition and with a traditional seller, buyers can expect a quick answer when they write up their purchase agreement!
Here are a few of the treasures I noted on the Twin Cities MLS throughout the Forest Lake area this past week:
- Bank-owned 5BR on 2 Acres in Wyoming! 1995 built home on treed corner lot. 3 car garage recently listed at $189,900
- Custom built on Anderson Lake in East Bethel! 2400+ sq ft 2-Story built in 2003! 4BR/3BA has 3 stall garage w/oversized door priced at $280K
- 2001 Built 4 Level on Wyoming Acre! 4BR/3BA/3 car landscaped acre yard. Assessed by county at $236K. Trad seller asking $195K
- 5+ Beautiful Acres and Huge Master Suite in Columbus! 1998 2 Story w/3BR/3BA/4 car with stone fireplace. Original list $390K, now $289.9K
- Forest Lake Modified 2Story on 1+Acre w/environmental lakeshore! 1999 Built 4BR/3BA/3 car w/3000+ sq ft, 2 fireplaces & beautiful landscaping. Assessed bu county at $298K, trad seller list price $269.9K
- 2002 Built Stacy Split Level on 2.5 Acres! 4BR/3BA/3 car heated& insulated garage. Master suite. Original list $274.9K now traditional seller price at $250K!
- Bank-owned in Linwood 3BR/2BA/3car on 3.8 WoodedAcres! This one should pass FHA for a first time buyer too! 1900+ Sq ft, Wood floors. Walkout Basement. Assessed value over $250K, bank asking $187K.
If you are in the market for a great deal on a foreclosed home, time to get organized because the rules to buy are a bit different than when working with a traditional seller.
Seven Tips for homebuyers considering a foreclosed home:
- Banks LOVE clean offers. Buyers MUST be preapproved with credit checked and employment and funds verified. Documentation must accompany the offer or it won't be considered.
- Banks reject lowball offers...no negotiation. They are a business and know the value of the asset they are selling.
- Well priced foreclosed homes get multiple offers. Serious buyers put in their best bid first.
- Banks sell homes AS-IS. What you see is what you get. In most cases, repairs will not be made.
- Banks will not pay for inspections in most cases. This includes the septic system and/or well. Be prepared as all inspections could end up being the buyer's responsibility. If you chose to inspect the septic or the county requires a septic compliance test, expect to pay $400-$500 for this inspection. A well test will run around $150. A whole house inspection is $350-$500.
- Personal property is not included as part of the sale. So if the appliances are at the home when you close, they are a bonus. The bank will not remove. But they don't guarantee will remain at the home or that they are in working order. This means if someone breaks in the home prior to the closing and takes them, the bank will not replace.
- Having your own REALTOR® to represent your interests is essential. The listing agent is under contract to represent the bank. In many cases, the bank will not allow a dual agency so if a buyer contacts the listing agent to write the offer, the buyer does not have representation. This means all of your information goes to the bank...the listing agent is required to tell the bank everything that you say about your financing and the amount you are able or willing to pay. But the agent is not required to tell you anything in return. The agent works only for the bank.
Are YOU ready to get a great deal on a home? Let me be your professional REALTOR®!
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