Foreclosure/Bank Owned

Foreclosed and foreclosing properties have dominated many of today’s U.S. real estate markets—several years after the reality of losing their property hit home for millions of American home owners.

First-time home buyers make up almost half of all buyers of bank-owned foreclosures and soon-to-be foreclosed short sale properties. They’re followed closely by investors seeking rental properties, and a third important group—homeowners who find they can move up to a bigger or better home they previously could not afford.

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 and frequently involve multiple-offers, bidding the sale price up.  Buyers must be prepared; have a strong pre-approval letter, a good down payment (for a financed purchase) and often times, the ability to have the home inspected prior to making an offer.
  • Motivation: Buyers must be motivated to compete successfully. Buyers in this market must 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. One recent study 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.  Don’t be driven by fear.  Successful bidders on foreclosure homes are prepared, with the help of their Realtor, to obtain estimates for potential work orders and secure contractors after closing.
  • Expert Help: Finally, smart buyers know they need to be even smarter—they become a team with a local expert real estate broker 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.
  • There is no better time than the present to improve your real estate ownership position:
  • Whether as a first time buyer, a move-up buyer or an investor, the time is right.  Interest rates are at record lows, prices are beginning to rise again, and the last big wave of foreclosure properties is happening now.   Your local RE/MAX Junction agent can help.
  • RESOURCES:

Homepath.com

Homesteps.com

HUDhomestore.com