Date Posted: 2012-07-02 02:59:47
Site Posted: Myproperty.ph
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People are often led to believe that foreclosures are easy to buy, being that they cost less and banks are looking to sell them quickly. The truth is that you’ll have to do quite a bit of searching to find a really good deal, and banks don’t accept offers as quickly as you might expect. Make your home foreclosure shopping and buying easier with these tips.
If a foreclosed house for sale hasn’t been in the market for long, don’t make extremely low offers. No seller will jump at a lowball offer after only a few days of listing their property, and banks are no different. While banks do price the properties aggressively, they are still trying to make money, so don’t expect them to lower their prices just like that. Banks will eventually slash prices after a while, so if you really want to buy a specific property at a reduced price, it would be better to wait a few months and find out if the property is still for sale.
As competitive as you are, avoid participating in bidding wars. Some foreclosed houses are listed below their actual value just to attract a lot of buyers and instigate a bidding war. If you’re not careful, you might end up paying more than what the property actually costs, especially at its foreclosed state. Find out the real value the house by doing a comparative analysis of similar properties in the area that have just been sold. You also need to know how much you can afford so that you know how far you can go and when you should walk away.
If you really want to get that bargain property, make sure that you have cash on hand. Banks would rather sell to a buyer who can close on the house as soon as possible, and you can’t do this with a mortgage, since closing with a home loan usually takes up to 2 months. If you don’t have the cash to pay for it, think about borrowing it from family or friends. Afterwards, you can pay back the money you owe them by getting a mortgage. Just make sure that you will definitely be approved for a loan before borrowing money from anyone.
If you know that you’re competing with other buyers, keep your offer clean. Foreclosed properties are put on the market with no changes, so asking the bank to make certain repairs won’t get your offer accepted. Don’t ask them to include pointless conditions in the contract, either; no one wants a buyer whose offer has contingencies.
Since buying a foreclosed home is not the same as purchasing a standard property, it may be in your best interest to hire a buyer’s agent. They will be able to give you information like available foreclosures and local market conditions, which are essential in finding the best deal.
Jillian Cariola, Writer
(cover image by respres)
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