Finding a Bargain
Given today’s real estate market, a motivated buyer will encounter a wide selection of homes to choose from. Unfortunately There is no shortage of supply. However, finding a bargain amongst the available foreclosures may prove to be challenging. With homebuyers everywhere looking for a bargain, what can you do to improve your chances?
Investors and buyers alike understand the value of a real estate bargain. That is why foreclosure listings have always proven to be a valuable resource for locating bargains. Banks do not want to sit on a large number of properties. They do not make money doing this; therefore, they are extremely motivated to sell those properties as quickly as possible. This is great news for the savvy buyer or investor because it opens the door to potentially negotiating a deal to buy a foreclosure from a bank or the government at a price that is 10 to 40 percent below market value. That is quite a bargain if you can find one of those property types.
A great place to start looking for bargains is among the current real estate foreclosure listings. Foreclosure listings are plentiful and that in of itself often increases a buyer’s odds of finding a bargain, but the sheer volume alone does not make it a “sure thing”. Locating a bargain requires using the right tools, the powers of observation and doing your due diligence.
The Right Tools
There are several tools that are useful in hunting for foreclosure bargains. Many buyers can browse the Public Notice section of newspapers looking for the Notices of Default (NODs), visit the county courthouse to read the public posted NODs, or call foreclosure attorneys. These tools are usually free and available to the general public, but are often time consuming and not always up-to-date, depending on when they were posted.
One of the top ways to discover a great foreclosure bargain is to become a member of a foreclosure listing service such as
ForeclosedHomes.com. Listing services like ForeclosedHomes.com offer current and accurate foreclosure listings of properties that are in default, scheduled for auction or are bank-owned. These foreclosure-listing services are convenient one-stop resources. Not only can they offer an extensive database of properties in some stage of foreclosure located all over the country, but they can also provide additional information about the property, home valuation resources, and information on state-specific foreclosure law.
There are free listing services available, but do not be surprised if you receive outdated foreclosure listings and/or inaccurate information. In this case, you are likely to get what you pay for. In the long run, you will probably grow increasingly frustrated with the amount of energy and time you expend following up on outdated or worthless leads.
By using a fee-based or membership driven foreclosure listings service, you dramatically increase your odds of receiving timely and relevant information, which is essential to your success at buying a bargain foreclosure property.
Inspect the Property
It is not uncommon to find that a foreclosure home may need repairs. Those repairs can be either minor such as a fresh coat of paint or new carpeting, or more significant like a new electrical or plumbing system or a new roof. Knowing what is needed, and having an idea about the costs involved in getting the repairs done, will give you a better idea of what you should pay for the property. Therefore, whenever possible, inspect the property as thoroughly as you can to determine if that bank foreclosure home is indeed a bargain.
Doing Your Due Diligence
Knowledge is your friend in real estate. The more you know about a particular property before you make an offer can put you in a better bargaining position. Find out all you can about the foreclosure you are interested in buying. Consider performing a title search on the property, check property records, read and understand all documents related to the sale thoroughly. Consult with a professional if you are unsure of how to proceed. In most cases, all sales on foreclosure properties are final. Having your “Is” dotted and your “Ts” crossed are essential to both the purchase and to ensuring you indeed have secured a worthwhile bargain.