Foreclosures, Short Sales and Auctions Oh My!

By
Real Estate Agent with Mike Bowman

A forclosured property is owned by the bank. There was a time when foreclosures needed too much work to be profitable. There are some foreclosures that are move in ready. They may need cleaning and a little paint but the foreclosures that I have seen lately do not need a lot of major repairs. There are more homes on the market than buyer's now so it is a buyer's market. Buyer's are able to purchase good homes at a lower price. Banks have a large amount of inventory they are trying to get rid of although sometimes it seems they should go lower they have their bottom line and will not just give the property away. The bank gets a market analysis and the asking price is usually lower than market value. The homes are in good condition and the prices make it worthwhile to buy.

Sometimes banks price the property low just to get several offers to come in. If the house is in good shape chances are other people will be bidding. Give your best offer so that you do not lose the home. If you don't have your heart set on the house and you would not mind walking away, send a lower offer and take your chances.

You should not fall in love with a house until you are sure you are the winning bid. Then you will not be disapointed. There are alot of homes on the market but there are not alot of "good" homes on the market. If you make an offer on a good home it is probably attacting other buyer's.

A short sale is different from a foreclosure. A short sale is the seller asking the bank to take less than is owed to pay off the note. Sometimes the seller is living in the property. A short sale may take as long as 6 months. The bank has to take a shorter amount of money than the seller owes and it has to be approved by several people. There are so many short sales and not enough employees at the bank to take care of them. It is getting better though. I think most agents are experienced working with the bank.

All of the areas have many homes on the market.  It is a buyer's market.  If you are living in an apartment  or with family members you need to buy a house now before the interest rates climb. We may never have a better time to buy a home. We never know when the market will turn again but it will turn. It has never been a better time in the past 11 years.  The interest rate is great  around 4-5 percent depending on your credit score..  I can get a buyer qualified with a 500 credit rating if you have 10% down.

Most areas in the DFW area have several homes on the market that are bank foreclosures or short sales.  There is a variety of price ranges.  Some of the homes are new and have never been lived in.  www.bidselect.com

HUD homes are government owned forclosures. The market is great if you are a buyer looking for a good deal. To bid on a HUD home you have to contact a realtor. www.firstpreston.com

 

Auctions are another way to purchase a home that is under market value. An auction can be risky because you cannot get the earnest money back if there is a problem with your financing. You have to have a home inspection prior to winning the bid. You could possibly pay for the inspection and not win the final offer. If you are an investor that wants property to rehab the auction is for you.

www.auction.com

Call for a list of foreclosures and HUD homes in Dallas and Tarrant county

 If you do not have an agent and you want to find a good home call Cheryl Brewer RE/MAX Pinnacle  817 217-0005 for more information. 

www.cherylbrewer.remaxtexas.com Go to my website if you would like to search for a home on the Multiple Listing

Comments (1)

Anonymous
garth mager

private lender needed for florida thank you garth mager

garthmager@gmail.com

772 979 6568

Apr 05, 2011 04:05 AM
#1