Sarasota Real Estate Market News

Beat the competition in buying foreclosures

NEW YORK – Feb. 7, 2012 – While bank-owned homes are plentiful in many markets, they aren’t always easy for a buyer to get. Foreclosures sell at bargain prices – sometimes at 35 percent discounts when compared to nonforeclosures. But the ultra-low prices attract investors and all-cash offers, which makes it difficult for other buyers’ bids to win out.

So how can buyers beat the competition to get a foreclosure?

Get the first look: Fannie Mae and Freddie Mac’s First Look program offers first-time homebuyers and others who need financing and are looking for a primary residence the first opportunity to see bank-owned homes before investors. Buyers have a 15-day window to submit offers before investors have the opportunity to start bidding. Homebuyers can search for Fannie Mae’s REO properties at HomePath.com. Properties owned by Freddie Mac can be found at HomeSteps.com.

Submit a competitive offer: Homes priced at heavy discounts are usually in high demand and attract multiple bids. Lowball offers won’t likely get far. Some housing experts suggest starting with your best offer. “My advice is to offer the most you feel you would ever pay for the property,” said one recent foreclosure buyer.

Make a large deposit: If a buyer wants to get the banks attention, they could offer a larger than typical good-faith deposit. But if the buyer has to back out of the deal for some reason, he or she may be risk losing the deposit.

Even if buyers really want the property, don’t let them cave in to unreasonable demands, like waiving a home inspection. Otherwise, it may be a decision they quickly regret if the home is later found to be rife with problems.

Source: “How to Beat the Competition and Buy a Foreclosure,” Sun Sentinel (Fla.) (Feb. 5, 2012)

May 18, 2012 - Posted by | News related to Buyers, News related to Investors, News related to Short Sales and Foreclosures, News related to the Market

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