Foreclosure Buying Tips

Homes Now Available Below Building Cost

Realtors in places like Florida report that they have never seen anything like the conditions that exist today. It is now possible to purchase homes for $250,000 that sold for $750,000 just a few years ago at the height of the boom. While the higher figure may not have been a realistic figure of worth, the low levels that housing sells for today often amount to significantly less than what it cost to build them.

This trend may continue driven by a recent upsurge in foreclosure rates in Florida. In addition, there are sub regions such as Fort Meyers where a large number of homes remain empty. All that being said, it is still tricky to find bargains in housing.

Search the Available Inventory of Baldwin County Foreclosures For Sale

All Auctions Are Not Equal

Buying a home at a judicial auction is one way to find good buys. These are different from the sort of heavily advertised public auctions that can be found at Websites like auction.com. They come with a different set of rules and regulation.

A deposit of 5 to 10% is required in order to put down a bid. If you have the winning bid, you must deposit the full amount, generally within 24 hours. Failure to do so means that you forfeit the deposit.

It may not be possible to do anything other than a drive y inspection. Many of these properties are still occupied so you will not even see the inside much less have a chance to inspect the foundation or roof.

Different states have different rules governing these procedures and in some places you may inherit undisclosed liens or mortgages against the property. These can be avoided by running a title search before bidding, but this represents an upfront cost of from $50 to $200 on a property you have no guarantee of getting. The competition for these sorts of properties can be considerable. Many of the buyers are experts in the practice who have plenty of cash on hand to outbid you.

REOS Have Profit Potential

Real Estate Owned Properties of REO’s are properties a bank has assumed ownership of after going through the foreclosure process. Banks do not see home ownership as part of their business and thus generally seek to unload such properties quickly often at attractive prices. The homes will usually be offered as is because they do not want to spend the time making repairs.

In order to determine if an REO is priced below the market value, you have to know the market well. It also helps to work with an agent who is familiar with the REO market in a given locale and can cue you in on the listing the moment it becomes available.

Make sure in these instances that you are pre-approved for a loan. These sort of transactions are completed quickly.

Make your bid as high as you are prepared to go. The key to a successful bid is in analyzing how far over the asking price you should make your offer.

For more Foreclosure buying tips, contact the sales office of Jason Will Real Estate at 251-866-6464.