Is buying a foreclosure a good deal? It depends. Although a property is bank-owned or foreclosed, it doesn't mean you can get it below market value or get a great deal. Often, you can find a great deal on a foreclosure. However, as the market improves, banks increase their asking price. As a result, they receive higher values. The margin between the top of the market and the bottom market decreased, so margins investors aren't concerned with margins when buying foreclosed properties. There are lots of ways to buy foreclosed properties: HUD homes, Fannie Mae properties, independent bank-owned properties, and REO packages. REO packages allow investors to buy multiple homes at once. Some investors can even purchase 100 homes through REO packages. You can also buy a foreclosure at the auction.
For example, a clean, ready-to-move-in foreclosed property in a nice area could be a bargain. You can purchase a home from the bank and move in immediately. An outdated property that needs repairs will cost you more money, of course. If you're interested in buying a property below market value, please reach out to us. We can help you find a foreclosure or a motivated seller who is highly motivated to get out of the home. We look forward to hearing from you!
Today we'll talk about the number one deal killer for real estate transactions. I've been doing this for about eight years, and I've seen hundreds of deals. Once the buyer and seller agree on price and terms, the contract gets executed. Then the buyer starts doing their due diligence, which includes the home inspection. The home inspection is the number one deal killer for all transactions in the pre-owned market. For buyers, this is why we always recommend that you get a home inspection. We really think it's in your best interest to have one so you get a clear idea of the property's condition. Then, if you can't negotiate with the seller on the inspection results, you don't have to buy the home.
For sellers, the home inspection is the most nerve-wracking part of the transaction because once the contract is executed, you don't have any more negotiating power. If you can't come to an agreement with the buyer after the inspection, you will have an uphill battle selling your home. Other potential buyers will want to know what happened and why the previous deal fell through. That's why we recommend sellers get a home inspection done before they put their home on the market so you can anticipate issues before they arise. Of course, if the home inspection goes smoothly, everything after that is a piece of cake. If you have any questions, give me a call or send me an email. I would be happy to help you!
There are four phases of the home buying process: preparation, home search, negotiation, and closing. Today, we'll focus on phase one: the preparation process. Preparation includes a few different things. Don't skip the preparation phase and dive into searching for a home. In the long run, that could cost you money. The first part of preparation is gathering information. Talk to friends or family members who have recently bought a home, and, of course, talk to an agent. We would be happy to answer any questions you have before you get started.
The next thing to do is hire an agent who will work in your best interest. They will not only help you find the home, but they will also save you tens of thousands of dollars in the long run. Our VIP Buyer program is designed to do just that. The third part of preparation is getting your financing together. You need to make sure that everything is in line so that the moment you find your dream home, you can pounce. If you have any questions about today's video or about the home buying process, give me a call or send me an email. I'd be happy to help you!
