You Too Can Have An Amazing Foreclosure Home Purchase

You Too Can Have An Amazing Foreclosure Home Purchase

You can save BIG money by buying a foreclosure home and utilizing these 7 key steps. The best part is, if you utilize these 7 steps, they’re simple and you’ll save lots and lots of time and money.

You have to be aware of a couple pitfalls in buying a foreclosure.  Being hasty and jumping on the first deal can cost you a lot of money.  However, good deals go fast, so be ready to act if you like the home.  If you do find that one home that you absolutely love and you can see yourself in and know it’s the right one, don’t sit back and wait too long.  Foreclosures tend to sell fast, so don’t sit on your hands if you know for sure that this is the one! 

You Too Can Have An Amazing Foreclosure Home Purchase

Key Step 1 – Look for overpriced properties.  Now that statement probably confused you.  You’re probably saying, “Why would I want an overpriced home?”  But let me explain.  Banks and sellers overprice homes.  This means that they stay on the market for months and months.  The bank gets fed up with having this property on their books and it’s not selling because it’s overpriced.  You make an offer and the bank is tired of sitting on the house for 8, 9, 10 months.  They will end up taking your offer fast. Take a look, have your realtor go out there and look for some overpriced properties to check on; especially ones which are overpriced and have been on the market for a while.

You Too Can Have An Amazing Foreclosure Home Purchase

Key Step 2 – Can you make repairs?  The bottom line is if you can buy a home for $150k and the home is valued at $200k, you invest $10k in repairs then you’ve made a savings of $40k.  That is 20%-30% in savings.  It will take some work on your part though to crunch the numbers and make sure the repairs plus the purchase price make sense. Also, if you need to obtain financing, you'll have to make sure none of the repairs will be required to obtain the loan.

You Too Can Have An Amazing Foreclosure Home Purchase

Key Step 3 – Do other buyers want the neighborhood?  The bottom line is that a good neighborhood generally means long term appreciation.  Does it have good school zones?  Is it close to shopping?  You do not want lots of foreclosures in that area because that means your home value will go down.  Are there builders still building in the area?  If so this will also decrease the value of your home.  But the key here is that there is always one area of town where people want to live; however this area will have a lower appreciation because more people will buy and retire to this area of town.  This makes the area a more stable area, so it has a lower appreciation.  This means you have to be careful and find a happy medium between the two extremes.  Find all this out and ask yourself if you’re going to be happy and willing to live there for the next 5-10 or even 15 years of your life.

You Too Can Have An Amazing Foreclosure Home Purchase

Key Step 4 – Financing.  You really need to be pre-approved for your loan or be ready to pay cash.  Bank homes require a firm pre-approval or proof of cash when they are looking at offers on their homes.  Banks will sell a home for less money to someone if they know the buyer is “A+” which means that they are either paying cash or have a firm pre-approval.  So you absolutely must be firmly pre-approved for a loan or have proof of cash to buy.

You Too Can Have An Amazing Foreclosure Home Purchase

Key Step 5 – Make an offer at the end of the month.  The banks have deadlines and goals to reach.  They need to sell a certain amount of homes each month and there are bank employees out there that get paid bonuses for reaching these goals by the end of the month.  So many buyers want to close by the end of the month so they make an offer at the beginning of the month.  Be willing to close any time of the month.  This can mean a savings of 10%-15% on a home!

You Too Can Have An Amazing Foreclosure Home Purchase

Key Step 6 – Read between the lines.  Bank agents are overworked, plain and simple.  Because of this they don’t put full details on the listing information.  They have less pictures and less info that they offer.  Drive by the outside and check it out yourself because often it could truly be that “Diamond in the Rough” that could be just what you’re looking for and you can get a great deal on it.

You Too Can Have An Amazing Foreclosure Home Purchase

Key Step 7 – Stop getting shoved around by the bank.  If every one of these bank homes are going like hotcakes, then consider going with a normal seller home.  Most sellers and realtors understand that they have to compete with bank homes today, so they are willing to take lower offers. 

If you need an agent and you would like help in buying a foreclosure give us a call.  I hope you enjoyed this free information and I hope you get a great deal when buying a foreclosure because you are now going into it with a little more knowledge and information.