Many buyers are interested in buying foreclosures in hopes of getting a great deal. In this market there are plenty to be found and some are good deals, others may need more repairs than buyers are prepared for. Keller Williams has these helpful tips:
The truth is: these markets demand most of the same things an ordinary market demands of buyers—only more intensely and pointedly:
- Money: Buyers must be financially qualified and ready to buy. The best properties go quickly. Buyers must look strong to lenders.
- Motivation: Buyers must be motivated to compete successfully. Keller Williams agents urge their buyers in this market to be clear about both their “motivating why" and their criteria for the property itself (size, location, condition, floor plan, etc.)
- Location: Contrary to the rumors, prime buying opportunities exist in almost every neighborhood and price range.
- Condition: Buyers should understand that repair costs are not necessarily large. The Keller Williams Distressed Property Buying Survey shows the average cost to repair to be $5,000—that’s less than 3 percent of the median purchase price in the U.S. today.
- Expert Help: Finally, smart buyers know they need to be even smarter—they become a team with a local expert agent who knows local property, pricing, lenders, and the best listing agents. A strong listing agent can be a critical advantage in seeing a distressed property through from contract to close.
Are there great foreclosure deals to be found in your local market?