Some Buyers Refusing To Look At Foreclosures

By
Real Estate Agent with RE/MAX Andrew Realty Serfvices

The National Association of REALTORS released its 2011 Profile of Home Buyers and Sellers and there is some interesting information in it.

45% of the buyers who responded to the survey said that they did not even consider purchasing a foreclosure when they looked for their home.

Some home buyers avoiding foreclosuresAlthough the survey didn’t ask respondents for reasons, purchasing a foreclosed property can be a frustrating process. With a typical real estate purchase, you submit an offer and within 24 hours the seller responds. If you are buying a foreclosure, receiving an answer in a week is a fast turn around for a bank and waiting up to a month to get a response is not unusual. Foreclosures are sold in “as is” condition meaning that you have the right to have a home inspection, but if you aren’t happy with the results, your only recourse is to back out of purchasing the house.

I’ve seen banks do some pretty illogical things, too. In one recent sale, it took the bank 6 weeks to have the house dewinterized for the home inspection. Then they said if the closing didn’t happen by the end of the month (which was 3 weeks away), they were going to put the property back on the market. They were the ones that had caused the delay! Even their attorney told them it was irrational.

The moral of the story is that you can get a good deal buying a foreclosed home but you need to have patience and fortitude and be prepared for frustration as you go through the process.

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Topic:
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ERA
MA REALTORS
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Rainer
154,859
Lucy E. Thompson
Keller Williams Realty Premier Properties - Summit, NJ

I am not altogether surprised at these findings, especially for buyers who have a specific time frame.  Buyers of mine recently closed on a different house (a regular seller sale) after over six months in another very frustrating transaction that went nowhere because the bank simply did not respond.  As an agent I am very wary of wasting my time on fruitless short sales and foreclosures although I clearly recognize that they often present great opportunities for those who are extremely patient.

Jan 25, 2012 09:35 PM #1
Rainmaker
589,933
Phil Leng
Retired - Kirkland, WA
Phil Leng - Retired

Hi Deb on the Web,

Love your moniker! Easy to remember and catchy!

I deal mostly in foreclosures and what you say is true.

Good deals. Plus a good deal of frustration.

Phil

Jan 25, 2012 10:05 PM #2
Rainmaker
1,356,146
Wayne and Jean Marie Zuhl
Samsel & Associates - Clark, NJ
The Last Names You'll Ever Need in Real Estate

I wonder if perhaps people's reluctance to look at foreclosures is a result of the media hype? 

Jan 25, 2012 10:46 PM #3
Rainmaker
601,487
Donne Knudsen
Los Angeles & Ventura Counties in CA - Simi Valley, CA
CalState Realty Services

Deb - This doesn't really surprise me.  Based on my experience with my own buyers/borrowers, so many of the REOs around here (Los Angeles & Ventura counties) are pretty run-down and dilapidated and dumpy.  Furthermore, because of their condition, many are simply not eligible for standard financing.  So many are perfect candidates for rehab loans but then the banks refuse to accept or even entertain rehab loan offers.  It's just so ridiculous!

Jan 26, 2012 05:14 AM #4
Rainmaker
165,690
Jill McTague
RE/MAX Andrew Realty Serfvices - Medford, MA
DebOnTheWeb & Associates - Medford, MA Real Estate

Thanks for your comments!  I find that buyers are pretty split - half say that they don't want to look at foreclosures and the other half are only interested in bank owned properties.

Jan 26, 2012 11:37 PM #5
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Rainmaker
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Jill McTague

DebOnTheWeb & Associates - Medford, MA Real Estate
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