It can be an exciting and challenging process to find, evaluate and ultimately purchase a home; let alone a foreclosure property. For those of you who are considering a foreclosure for your next home, you need to first find a seasoned real estate agent, like one from InfinitySouth Realty, who will help you navigate the various steps and pitfalls of finding, bidding on and purchasing a foreclosure property.
If you are house-hunting or a new foreclosure property to buy, you should first understand what you are thinking about purchasing. Foreclosures, also called real estate owned ('REO') property, are homes owned by a lender as a result of the prior home owner defaulting on their home loan. These properties are sometimes referred to as bank-owned properties.
There are two (2) common ways to buy foreclosures: From a Bank or at Public Auction. Buying properties from a Public Auction is not the best way to buy a new home for the average home buyer. Using a real estate agent and buying the foreclosure from a Bank is the preferred method for getting a foreclosure property.
There are many factors to consider when buying a foreclosure property when compared to a traditional home purchase. REO Properties can be a great way to purchase a new home at a discount but it also can be more challenging to navigate.
Finding foreclosures can be fairly straightforward as most Banks will now list their REO Properties with various real estate agents and they can be found on the local areas MLS (Multiple Listing Service) by your agent. Or you can search yourself through our Website that you are on. Just begin your search here and then call on of InfinitySouth Realty's real estate agents for help.
Once you have found a foreclosure property you like, Pricing is the next step. Most REO Properties are priced to sell so when you make your opening offer be sure to make it a fair one and not a low-ball offer. Most Banks are less willing to 'fire-sale' their properties now. Also, sometimes getting an answer back from the Bank on your offer can take a little while; so be patient.
You will also need to be prepared for dealing with another difference between typical home and foreclosures: the condition of the property, disclosures and inspections.
Most of the time, the Banks who own these REO Properties have little or no knowledge about the condition of the property and rarely has any records or history regarding any repairs, maintenance or issues related to the property. Therefore, Buyers have to exercise great caution and perform very strong due diligence and inspections to ensure that they are not getting a property with problems or expensive repairs.
Most foreclosure properties can be inspected and should be by a licensed inspector. As with all home purchases, buyers will have to secure insurance, probably pay Earnest Money with their Offer, either pay cash at closing or get financing and work with the Bank to coordinate a closing date and work out any remaining issues to finish the transaction.
Buying a foreclosure property can be a great opportunity to get a good deal but you still have to protect yourself so you do not miss any issues or potential problems with the property. That's why you need to get a real estate professional to help you navigate those twists and turns. InfinitySouth Realty is ready to help when you need us most.
Call us today at (251) 599-6375 and learn how we can help you get the right foreclosure property that fits both your wants and needs!