The foreclosure market is certainly a hot place to look for unbelievable deals on property… but not everyone is prepared for the realities of buying one of these homes. It is important to have your facts straight and your expectations in check when looking at Foreclosures in Desert Mountain. There are plenty of people hoping to take advantage of these rare market conditions, and the more informed you are as a buyer the more likely you are to become a happy owner of one such property.
Below is some information I like to review with my clients before embarking on this rewarding adventure. It’s not the “cement in your drain pipe” stories you should be worried about, which is far less common than you hear, it’s the more mundane details that cause the big hiccups.
“As is” Property
Most foreclosure properties require some work prior to moving in. Generally speaking, you should expect to replace any carpet and re-paint the interior. A full inspection prior to purchase is essential to forecasting any additional expenses the property may require. We work with an excellent inspection company that will help guide you through this important step.
The Offer Process
It is best to pick a top 3-5 properties that meet your needs when looking at foreclosure or bank owned homes. Recent market trends indicate that banks are listing properties well below market value. As a result, foreclosures are selling for 97.5% of list price on average. Competing offers may cause you to bid the home above list price, but keep in mind this will still be an excellent value. It is better to bid a few thousand over list price and walk away with a home 55% off previous price than leave empty handed. Our expertise will assure your best interests are represented during this process.
Once the paperwork for the purchase offer has been completed, we wait for a response from the bank. This normally takes 3-4 business days.
If the bank accepts the offer, they will send out their addenda to be signed by the buyer. This addenda dictates the conditions and terms of the transaction. Once this is signed by the buyer, it goes back to the seller for signatures. A purchase offer and the bank addenda signed by both buyer and seller, allows us to open escrow.
At this point, we have an executed contract and the transaction proceeds like a regular purchase.
As a former real estate Attorney, I love to help clients purchase Lender Owned Homes. Put my experience to work for you. Visit www.DesertMountainHomesOnline.com for all available Desert Mountain Real Estate or feel free to contact me with any questions at (800) 300-0263.
Carmen Brodeur BA, LLB
Desert Mountain Specialist Realtor / Former Attorney
Carmen@ScottsdaleExperts.com
1-800-300-0263
www.DesertMountainHomesOnline.com
{ 2 comments… read them below or add one }
If I already have an agent who has shown me a dozen homes and she shows me one that is a bank owned home which may be bank owned and is being marketed by another Real Estate Co, who handles bank-owned properties, what is the ethical way to proceed?
Thank you very much for your courtesy and kind attention to this request.
Esperanza, bank owned homes are listed on the mls by many different agents. The agent who is working for you can represent you as your buyers agent for any bank owned home. Let me know if you have any further questions. Thanks.