I'm Interested in Foreclosures - Translation:

Real Estate Agent with Homestead & Co 157234

"I want to look at foreclosures"
I often get asked by current clients and prospective clients about foreclosures, short sales, REO's, Fannie Mae's, Freddie Macs, HUD's, and every other type of distress sale.   It seems in the mind of the general public that buying a foreclosure automatically makes it a good deal.  However, this is not always the case.  In fact, there are lots of ways to find good deals.

"What I really mean is I want to find a good deal"
Whenever I hear someone say they want to look at foreclosures, I ask them are they looking for a foreclosure specifically or a good deal in general?  Almost every single time they say they are looking for a good deal.  The truth is, there are tons of good deals out there, we just need to go make one.  In our local Edmond and Oklahoma City market, if listing is listed below market, it will be gone very quickly and often above asking price.  So, if we want a good deal, we need to go make one. 

Good deals are NOT advertised
Most people are not going to find a home that is priced below market, wait a couple days deciding if they want to make an offer, negotiate for a couple of days, and then end up buying it.  There are plenty of buyers and investors looking to pounce on deals like that, at least here in the Edmond and Oklahoma City markets.  So that leaves us with going to make a good deal.  

So now I get that good deals are not advertised, but how do I make one?
So now everyone is on the same page.  In order to make that good deal, we need to find a motivated seller.  Once we find a home that fits your needs, then we go negotiate the good deal.

What are the signs of a motivated seller?
There are several key signs of a motivated seller.  Keep in mind, though, that motivated sellers do not want you to know they are motivated.  The following are some signs or keys that the seller could be motivated.

  • The house has been on the market for a long time
  • There have been regular price drops
  • The house is vacant
  • The seller has already bought another house or put one under contingency contract

Of course there are all kinds of ways to make and find good deals, but hopefully this post puts sheds some light on the subject for people who don't deal with real estate every day.

Comments (2)

Doug Rogers
Bayou Properties - Alexandria, LA
Your Alexandria Louisiana Agent

I cringe at the "I want some area foreclosures" call. Mostly that means I want to pay pennies on the dollar for a home ALREADY LISTED for pennies on the dollar.

Feb 13, 2012 05:03 AM
Zach Sikes
Homestead & Co - Edmond, OK
Buy | Sell | Invest

Thanks for your comments Doug.  Not everyone understands this.

Feb 15, 2012 07:51 AM