Getting an Edge in Buying Foreclosures
First Look. The First Look program offered by Fannie Mae and Freddie Mac allows home buyers who are looking for primary residences to see the bank-owned homes prior to the investors. Home Buyers have a 15 time-period to get offers in before any investors have initiated bidding.
Competitive. Bidding wars are infamously correlated to buying distressed properties. The prices are already heavily discounted therefore low-ballers will not get very far. Many housing experts suggest starting at your best offer—this way you will be all in from the start, but your first offer will be the only one you make.
Deposit. Getting the banks attention can make the difference in a deal. Large deposits are a way of making a bold first step, just be careful. If the deal dissolves, this deposit may be lost.
With these steps, buyers need to always be cautious with their real estate endeavors. Realtors are there to make sure no unreasonable demands are met (ie waving a home inspection). Local Realtors know their market and will be able to assist you in taking the above tips to heart or telling you why in your situation they are not the best move.
Source: “How to Beat the Competition and Buy a Foreclosure,” Sun Sentinel (Fla.) (Feb. 5, 2012)
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