The Best
Ways to Get a Great Deal on a Foreclosure
By
Wesley Barnes So many people think that the word "Foreclosure"
automatically equals "Good Deal." That can sometimes be a mistake. Not all
foreclosures are good deals and buyers need to be careful. In this market,
it's not just about finding a foreclosure or a bank owned property. Those
are pretty easy to run across these days. The real challenge is finding a
foreclosed property that will also be a solid investment.
First of all, most banks don't want Realtors to advertise properties as
'bank-owned.' They think this will either give a negative impact to the
property or to the bank. Additionally, most flyers, marketing materials,
advertisements and "for sale" signs will not disclose the true status of
the property either. That makes it hard to determine which properties may
be actual bank foreclosures or pre-foreclosures.
Many people are advertising "foreclosures" on the internet. You can pay
for lists and other services which are springing up daily. The problem
with this is that many of these services are not local experts and much of
their information is dated. Even if you do find a trusted web site and
sign up for listing alerts, that will only be the beginning. This type of
tool may only gives you the tip of the ice berg.. a small portion of what
is available. Most online services will only provide you with properties
that are currently listed in the MLS listing system. However, many banks
have properties that are not listed in the MLS. By relying on this as your
only tool, you are only going to see a partial number of the bank
foreclosed properties actually available. Many of the best deals are gone
before you even know they were on the market!
One option for finding foreclosure listings: Go straight to the local
expert.
You should consider enlisting the help of a real estate agent that has
the experience, skills, and is the local expert. Don't be afraid to ask
them questions about their experience level. Someone who works regularly
with REO's will probably be able to track down the properties more easily
than a traditional agent. It really depends on who you're doing business
with. It can be the difference between night and day.
Your local experts in your respective market place are going to be way
ahead of the curve and can see what is coming to market before it even
gets listed. They study the market daily and are knowledgeable of the
market trends in their area. They subscribe to all the bank pre
foreclosure and direct bank foreclosure listings; they go to the court
house auctions and the tax sale auctions; they go to the bank foreclosure
auctions. And because of this, they know the status of the current market
place, they know what will be coming to market soon, and they know what is
in the pipeline for the future. Unless you have the expertise to make all
of these determinations yourself, you need a local expert that can give
you all the details on the best properties in the local area. When an
expert works for you, they can tell you why one property may be average
and the other one may be way above average. In order to get the very best
deal, you need to have a pro working for you and in your best interest.
When you are searching for properties online and don't have a
professional Realtor working for you, you are self represented. You are on
your own! Basically you are searching in the dark with a small flashlight.
If you have the expert working for you, it's like turning on the stadium
lights. Now you can see what is out there.
How much does it cost to have a professional realtor working for you?
Nothing. Nada. Zip. Zilch. It is the best free service available. Hire a
local expert buyer's agent for Free! Furthermore, with all the various
pitfalls out there associated with buying a distressed property of any
kind, you need someone working for you who not only has the experience in
dealing with these types of sales, but also knows the area experts who can
help you to assess other aspects of the property.
Some foreclosed homes are in various stages of disrepair. Many times
the repairs needed are merely cosmetic or quickly addressed. However, some
necessary repairs can be extensive. Make sure that you have someone
qualified to make these determinations before you proceed in purchasing
any property.
If the foreclosed property is a condo, there could be home owner's
association problems, assessments, law suits, or maybe just high home
owner's association fees to contend with. Maybe the complex has lower than
average rental income. These could be good reasons why the previous owner
had problems making the payments and could be potentially why the property
is a foreclosure in the first place. You don't want to acquire someone
else's problems without knowing up front what those problems might be.
You'll also need a local expert to give you the leg up on your bidding
competition.
Most of these bank owned properties will have specific instructions as
to how they will want your buyer's agent to submit the offer. The bank
offer package has to be perfect. Most buyers lose before they even get
started because they don't get the bank the requested or required
paperwork that they need. They lose the deal because of incomplete
paperwork! That is beyond frustrating. Working with the local expert, your
odds of getting the deal go up greatly. Many banks also have many
addendums that need to be filled out. A professional realtor that has
experience in filling out these additional forms will fill them out
correctly and as a result will usually have an upper hand in getting the
deal done. The bank selling the property doesn't want to waste time in
getting paperwork in order.
If you are paying cash, have your proof of funds ready. If you are
going to finance, have your pre-approval letter ready. (And be sure that
your lender will lend on the type of property you are bidding on)
Besides the pre-approval letter, many banks will look for the correct
amount of earnest money. Foreclosure banks don't want to make additional
requests for correct amounts. They just don't have the time or the
inclination. A deal could be lost if it is not done properly.
Just remember, there is no reason for you to search by yourself with a
flashlight in the dark? Hire the local expert to help you. The Expert will
turn on the flood lights on and illuminate the darkness for you. It's a
priceless service that you don't pay a cent for! As a buyer, you don't pay
the commission. The property seller, or in the case of foreclosures, the
bank pays the commission. A real estate agent has to work for either the
buyer's side of the transaction - OR - the seller's side of the
transaction. It's always best to have someone on your side.
If you were on trial for a crime, would you want to hire a lawyer that
hasn't had a case in 6 years and refers to his college text book for
examples? Of course not! If you were sick, would you go to a witch doctor
that has cured a few people in the Amazon? Of course not!
There are some absolutely fantastic deals currently being made with
Foreclosures and Short Sales. Now is your time to get your piece of the
action. You know what they always say "buy when they are selling and sell
when they are buying!"
For more information about
Myrtle Beach
Foreclosures please try: MBCondoExpert.com. For more information about
Myrtle Beach
Condo Rentals please try: OceanFrontCondoRentals.com.
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