"I want a Foreclosure"
I hear this frequently from Buyers, but I don't think its really what people mean. During my round of questions, what Buyers really want is more phrased as follows, "I'd like a steal of a deal that I can get into below market value."
Here are some quick notes to consider:
The deals are out there, rarely does a "steal-of-a-deal" reach the market in the West of Philadelphia Suburbs of Chester County. Homes are selling for the high 90%'s of the asking price. Exact statistics available upon request.
I know, I know, you've heard the news reports that you can pick up a foreclosure property for pennies on the dollar..... I know, I know, the banks have repossessed so many homes that there are plenty on the market. This is true in many different areas, Chester County is not one of them. There is not a heavy saturation of foreclosed homes. Again, there are some deals that are out there, and with the right Buyer's Agent working for you to find them - you can get into a property for a great deal right now.
For the homes that have gone through the foreclosure process, the banks usually ask 2-4 Real Estate Agents and/or Appraisers to come in and do a Comparative Market Analysis Report. They use these numbers to determine their asking price. Most of time, this is competitive or slightly below the fair market value.
Most foreclosures (I am generalizing) need work. The occupants that vacated the home were not happy campers. Many times the homes have sat dormant for quite some time. I'm usually left with a feeling of "sadness" after viewing these properties, because so often they were just not taken care of.
Purchasing a house to call your home or for an investment can be done at a fair price. When I work for you as your Buyer Real Estate agent, I'm working to get you the very best deal possible. Whether it be with a foreclosure or not.
Kim, you have portrayed the foreclosure picture accurately. Everyone wants a steal of a deal. But they are unaware of all the work that needs to be done on a lot of these properties.
sounds like calls we get. When a foreclosuer comes on the market right in Ann Arbor it always has multiple offers. But, no wonder, they are so under market value. Then the buyer has to bid way over it to even have an opportunity. Did you know they have to listed for 2 days before any offers are sent to the bank?
Kim, I get those requests as well and we just don't have them here either! Are you getting excited about SF...I am so jealous!
Kim I agree with you. I get a lot of calls from buyers saying that they want to purchase a foreclosure but when I discuss with them some of the ramifications of the purchase usually they say that its actually a deal that they want.
I'm not a risk taker, so I don't want a foreclosure. There are never any guarantees.
Kim - You hit the nail on the head, yes these buyers are usually just looking for a good deal. Here is where a good agent will do fact finding and help them meet their goals.