Make Sure the Foreclosure is really a "Deal"
I thought Carol from Jacksonville made a very good point with her blog about purchasing a foreclosure. Buyers really need to get help with their search. There is a danger of overpaying for a foreclosure (or similar distressed property) as well as losing a great deal!
I've been in multiple offer situations where my clients stopped bidding because I could tell if they went much further, the property would not be a deal or even a fair value. I've also had situations where buyers have lost properties that were great deals because they couldn't imagine paying list price.
This can apply to all homes in general. There are good deals or fair prices on homes on the market that aren't distressed properties. Sure, some are overpriced but, I've found many Real Estate professionals are trying to educate the sellers to price their homes properly and get their homes sold.
Many buyers are excited to consider purchasing a bank owned foreclosure (or REO) property.
Many of these properties are great deals, regardless of the condition, for the more experienced investors. Some may require a bit of work (usually a good 203 loan property).
There was a recent foreclosure my buyers were interested in: great subdivision, priced at $125K, for 3 bedroom, 2 bathroom with about 1655 square feet.
The biggest detriment? It had no kitchen. No cabinets, no counters, no appliances at all. In my buyers' mind, this was perfect, a blank slate to start from.
Many buyers are also tempted to offer less than listing price, thinking that no buyers will offer full price or better. That is a dangerous way to think. It's important to have your Realtor check for foreclosures in the area in similar condition to see what they sold for in order to prepare a proper offer if you really want the house.
This home was priced to generate multiple offers, which it did.
SO, how much did it sell for?
Listed at $124,900, and 18 days later, under contract to a cash buyer for $146,500.
If you want to purchase a foreclosure, you need to do your homework first!
Carol Zingone is a full service Broker Associate proudly affiliated with Prudential Network Realty in Atlantic Beach, FL. I help buyers and sellers locally, regionally, and internationally. With hundreds of happy buyers and sellers over the course of my career, I'm thrilled to help first time buyers, military buyers, seniors, investors, 1031 exchange properties, short sales and REO's. I have spent hours honing my expertise, including the designations of Certified Distressed Property Expert (CDPE), Graduate Realtor Institute (GRI), Loss Mitigation Certification (LMC) , Short Sales, Foreclosures, REO's, (SFR), and Senior Real Estate Specialist (SRES). Recently honored as the Realtor of the Year for the Northeast Florida Association of Realtors for 2009, I pride myself on providing excellent expertise to all buyers and sellers. Search the MLS via www.carolzingone.com for Jacksonville and area listings!
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