Foreclosures have a time frame. Depending on the asset management company that is being used, of course, but if you can follow the time frame, you can get a really nice house. I am working on a deal now where a couple is looking at a foreclosure that has been on the market 14 days. If they wait and make an offer on day 15, chances are the price of the house will go down. However, the price of the house is good, and may get snapped up in the 24 hour period. What to do?
All these decision are yours as a consumer, you can get advice from your agents, but ultimately your decision. So do some research with your agent. Figure out the price per square foot, is it really a great deal, what about the neighborhood? How much work needs to be done on the house for it to be financeable?
Then, logically and with as little emotion as possible, calculate your offer. If the house is $135,000 and its value is really $150,000 and needs very little work, snap it up TODAY! However, if its value is $140,000, wait – just that extra day – and see what it’s dropped to. That one day could make a $10,000 difference for you. If it’s snapped up by someone else – then there’s something else out there for you, keep looking and have your Realtor stay in touch with the listing agent – it could come back on the market! Stranger things have happened, especially in this market! Happy House Hunting!