Foreclosure vs. Motivated Seller's What's your take?

My favorite was working with a seller that had purchased a foreclosure to flip it. At closing we found lien upon lien and their net went right down the drain. They had even hired a lawyer to make sure that there would be no additional leins. A motivated seller looks VERY good to me.

I agree, there are a number of sellers wanting to get rid of their homes and are deperate about it. Its a buyer's market and if anyone is buying a home in today's market we have to make them realize that there are a lot of great deals out there, I don't recommend foreclosures.

Heck yeah! There are more than foreclosures out there.  I ran across a home in my market that smokes the foreclosures in it's price range.  Unfortunately the listing agent is guilty of gross incompetence in the marketing of the home.  No photo of the exterior, no decent photos of the interior and since it's tenant occupied one assumes the worst.  As if that were not enough, it's listed as a 4 bedroom, 1 bath--a white elephant!  It's actually a 3 bedroom, 1 bath with a very nice family room that the tenant is using as a bedroom.  It's in move-in condition and almost noone has a clue.

In my area, most foreclosures are priced at or just below market value.  There aren't many "great" deals out there, and when I run comps for a couple of properties for them, they see and understand what I'm saying so that helps.

Jeannette,  It's a matter of us educating the prospective buyers.  I can't tell you how many times of late that I've been told by a buyer that they only want to look at foreclosures or short sales, not even understanding what they are or represent.  I agree with you in regard to that they are a great deal or homes for sale that are not in this situation and again it's our job to educate the buyer.

I agree 100% People think that short sales and foreclosures are the deals, but they are not. Truly motivated sellers with a low LTV can offer the best deals. 

I got an email from a consumer today asking what a short sale was? 

Jeannette, so true.  Not only are you right in what you said and shared with your buyers, but the length of time with foreclosures, not to mention the typical condition of the home is probably more than most buyers want to deal with.

Jeannette - I'm with you on this one. You are so right that there is much more out there than foreclosures. Motivated sellers are easier to deal with and as already stated above, the condition of their homes are usually in way better condition.

The savings on a winning bid on a foreclosure might well offset any seller assisted closing assessments if you had to choose between two properties, as contrasted by either a motivated seller, bank owned or foreclosed property in a similar price category. The foreclosure should be more home for the buyer in order to have the advantage, also. Great opportunities abound in the foreclosure market. A little homework investigating the condition, chain of title and the neighborhood should be sufficient and can provide you with a great opportunity for a beautiful foreclosed home. Shoddy, unkempt properties were the byword of yesteryears foreclosed property. Not so today because of the available foreclosed inventory nationwide which includes many fabulous homes in move-in condition.

You are not the only one that feels that way! I just had a buyer after two fail sales on bank owned properties because of the inspections. I decided to take a chance and say, I need to stop off and look at a home for another buyer that may like this. I knew it was in their price range, but didn't have the foreclosure sticker. They decided to come in with me and put an offer on it right then and there! It was 100 times better than any foreclosed property they had looked at.