Why would anyone buy full price homes when there are sooo many foreclosures?
just curious. don’t know an awful lot about foreclosures. i know that the the banks are trying to get rid of them by selling them cheaper than the actual market price but yeah..is there some downside to them that i don’t know of??
cheers
It’s because foreclosures can be a pain in the butt to deal with. Yes, they are cheap. However many are not in excellent condition (they haven’t been maintained, or the owners were ticked that they were getting foreclosed on and took fixtures, appliances and such they could sell, etc). Also, many can take a long time to get an offer approved because they have to wait for the bank to finally sign off on it, and they can also take a long time to close.
A foreclosure is a great deal if you can find one in good condition that the bank is anxious to get rid of. Sometimes though they aren’t worth the hassle.
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July 6th, 2010 at 11:29 pm
Even in a depressed market—–certain desired areas are bucking the trend and values are holding…The down side right now is even with the record low rates all indications are we are headed down-hill again….Its tough to get a mortgage—people are afraid to spend money not knowing the future of their job…..and some think values still haven’t tanked yet.
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Landlord
July 6th, 2010 at 11:54 pm
Homes are foreclosed because owners could not make payments. That also means they could not maintain the homes. Buying a foreclosed home can take 6 months to a year to close on and the lender does not accept FHA loans for the most part. You also buy the home as is meaning all defects are unknown and there is no negotiation. Where as buying direct from the seller the buyer can request repairs, negotiate for a lower price and use an FHA loan. They buyer can close in 3 months and move in.
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July 7th, 2010 at 12:34 am
The asking price of real estate is just that, the asking price. This price is negotiable in either case? In most instances the real estate agent will suggest to the buyer that the only way to obtain the property is to offer full price. This is a fallacy in some cases.
Some real estate agents prefer not to deal with government loans such as FHA or VA, therefore some are simply messengers,with no negotiating skills what so ever. This is to your disadvantage.
If you wish to pay less than the full asking price then you should get an aggressive real estate agent. That is the purpose of interviewing real estate agents.
I always offer less than the asking price, with the right of first refusal. This way the seller must give me an additional shot at whomever make the top offer.
Therefore you must be able to make intelligent decisions along with a positive,aggressive real estate agent.
I hope this has been of some benefit to you, good luck.
"FIGHT ON"
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July 7th, 2010 at 12:50 am
It’s because foreclosures can be a pain in the butt to deal with. Yes, they are cheap. However many are not in excellent condition (they haven’t been maintained, or the owners were ticked that they were getting foreclosed on and took fixtures, appliances and such they could sell, etc). Also, many can take a long time to get an offer approved because they have to wait for the bank to finally sign off on it, and they can also take a long time to close.
A foreclosure is a great deal if you can find one in good condition that the bank is anxious to get rid of. Sometimes though they aren’t worth the hassle.
References :