As promised I delivered a mortgage broker on friday, and today we have top producing realtor
Charita Cadenhead owner of B’ham Wiire Realty.
Take it away Charita….
Who doesn’t love a bargain these days? I know that I do, but when it comes to buying real estate, do you want a bargain or do you want a home? That’s the real question. There are still many people who believe the hype that foreclosures can be purchased for pennies on the dollar and no matter what evidence we provide to the contrary, some home buyers just don’t believe that those kinds of scenarios are nearly non-existent. When they do exist, it is very likely that the only viable buyer is a real estate investor who has the experience necessary to manage a rehab project.
The truth is that in the home buying process, you should set your sights on purchasing a home that meets your basic criteria rather than solely looking for a foreclosed or bank owned property. In the end, by doing so, you’ll probably save yourself more time, money and far less frustration.
But if you are still set on purchasing a foreclosure, here are some things to consider:
- First and foremost, you MUST never be willing to forego a home inspection. This is true whether purchasing a foreclose property or not.
- Banks (the actual sellers) rarely, IF ever make repairs on the property. Since they’ve already lost thousands of dollars during and after the foreclosure process, it is highly unlikely that they’ll make repairs on the foreclosed property
- Bank owned properties in fairly good condition are selling for market value these days. What does that mean? It means that a bank owned property that is in just as good of condition as its non-bank owned counterpart, will likely sell at or near the same price as a similar non-bank owned property.
- Home inspection repairs vs lender required repairs: if the bank were to decide to consider some repairs, they are likely to only consider lender required repairs instead of home inspection repairs. Do not get the two of them confused.
- Lender required repairs are likely to involve issues related to lead based paint, electrical, roofing or things of a major nature. On the other hand, your home inspection will usually point out far more concerns (major or minor or for future reference), BUT the bank (seller) is usually only concerned with lender required repairs
- Keep in mind that non-bank owned homes can and do have some of the same issues that a foreclosed property can have. The biggest difference is that if the seller is not a bank, the likelihood of the seller addressing repairs is far greater than if a bank owned the property.
- Second only to the condition of the property is the fact that when it comes to making an offer on a bank owned property, it’s not about the price you are willing to pay for the property. Instead, it’s about the amount that the bank will “net” after concessions, title, attorney, liens, commission, etc. In other words, after everyone has been paid from the price of the sale, what is the amount that the bank will get.
Ahhhhhhhhhhhhhhite ladies hope that helps…..
Joe Lockett Burtally – Honest