I am exploring housing options for the near future, looking to buy my first house and willing to fix it up in order to sell in 3-5 years. I would be living in the house as I fixed it up as well. Is there any differences in buying foreclosed or pre-foreclosed houses vs. buying a realtor-listed house that's for sale and making a low (but not too low) offer? Will it be worth my while to buy the listed house at a discount or should I go for a cheap foreclosure in order to get the best deal?
2007-08-28 15:16:21 · 4 answers · asked by Paris P 3 in Business & Finance ➔ Renting & Real Estate
The difference between a foreclosure and a Realtor-listed home is that on a foreclosure, it goes to auction. There is a minimum bid, usually the total of what is owed to the lender/s of the home, the processing fees, and any back taxes, and existing liens. The payment must be cashier's check or cash payable within 24 hours from the winning bid/sale. There usually is no home inspection allowed before bidding, or termite inspection. You do not get to walk around the interior of the home and check it out before you buy it. The buyer buys AS IS. The foreclosure may have sustained damages from angry tenants/ex-owners who moved out. With a Realtor-listed home, the home is open to inspections. The price is negotiable; in this market, you will most likely have more say in the negotiating process as a buyer. Loans can be arranged to purchase the home, no cash/cashier's check required upon acceptance of the offer. You will have an agent/Realtor guide you through the legal process, and negotiate on your behalf, should you choose to have an agent. You can make an offer lower than what is listed; a good Realtor will help you determine a good starting point, and negotiate successfully on your behalf. It is worth your while to go for a listed house; there are many unforeseens that are best left to the professionals when bidding on a foreclosure. Good luck on your purchase :)
2007-08-28 15:39:29 · answer #1 · answered by J k 3 · 0⤊ 0⤋
I think you should not make the decision between buying a home in bank foreclosure or buying a home, not in foreclosure. The better way (in my opinion) to find a good deal, is to work with a Realtor who is offering both, foreclosure non foreclosure homes. You pick the home which fits your need best. If your choice falls on a foreclosure home you will have a Realtor on your site who can explain and help you thru the offer and closing procedure.
Please keep in mind that bank foreclosures are not always the best deal on the market. Depending on the amount owed on the house, some bank foreclosures in todays Market are far away from being the "good deal" compared to other non foreclosure homes in similar locations.
A good Realtor will be able to compare and find the best "deal" for you regardless.
2007-08-28 22:41:25 · answer #2 · answered by Monika Wilson 4 · 0⤊ 0⤋
Paris, I was a graphic artist for our local paper and my specialty was real estate...I listened to all the realtors in town daily...dont go for the so call better deal with a foreclosure, unless you see all the hidden costs up front...and believe me there are usually alot of them. The real estate market is as low as I have seen it in four years and a buyers market..if you want to get a deal...get one that is a fixer upper and build it like you like it...and go to diy network and find the cheapest best way to do so...with alittle imagination and determination you can get a great deal...forclosures have all kinds of hassles to them...do your homework, check the realtors rep and see who is the good guys in your area compared to who is trying to put money in their pockets at your expense....a month of homework and some research can save you thousands of dollars and alot of headaches and heartaches....trust me I know...I heard some horror stories that would convince you. Hope it helps...
2007-08-28 22:32:44 · answer #3 · answered by rowdysunsetart 5 · 0⤊ 0⤋
The foreclosure home might require $1000s of dollars in repair if the previously owner was reallllly frustrated .
The real cost of your best deal , might be higher than the Realtor one .
All you can do is look at all of them and compare true price . . .
Sale price plus repairs .
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2007-08-28 22:23:49 · answer #4 · answered by kate 7 · 0⤊ 0⤋