Life in Big Canoe, Real Estate in the Mountains

So, you’ve been bitten by the foreclosure bug and are looking for the deal of the century,  but you’ve never actually bought a foreclosure and need some direction. Read on for some pointers and you may be closer than you think to snapping up a weekend retreat at a rock bottom price.

• Step one in buying a foreclosure is to get your financing or cash lined up and ready to go by obtaining a prequalification letter before starting to bid. Most of the time no offers are considered without a Pre-Q letter when dealing with the banks.
• Buyers Agents are important to have when buying a foreclosure if they have experience and know the tricky ropes of buying a foreclosure. They also know the area and what the house was listed for before the foreclosure. Plus think of an agent like one of the Sherpas when climbing the Himalayas. It can be reassuring to have guidance from an experienced agent. (There will be a commission with or without agent representation so it does NOT cost you any extra)
• Be aware that most of the foreclosures have no power and are sold as-is. Short due diligence periods are considered but frowned upon. If you are serious about buying a foreclosure, bring an inspector with you, but know that he/she can not tell you that the AC is fine without testing it. Prepare for the worst and be happy if everything works after you buy it.
• Negotiations are possible but remember you are dealing with a panel of bankers with little emotion involved. They still negotiate hard but they LOVE clean contracts with no stipulations.
• There are several ways to buy a foreclosure; courthouse steps, traditional listing, private auctions. Good experienced agents know all the aspects of buying. I have personally registered and bid for clients while diligently watching for last minute poachers and have won these bids.
• Keep in mind that in order for the foreclosure to be a good deal, it has to have potential for resale. Look for homes that have good qualities such as location, views, easy remodels, and low prices.
• Last but not least, be realistic. You will get a great deal but it’s rare to get a home at 50% off the asking price. Many of the people who foreclosed had very high mortgages. The banks may take a hit just to take the house off the books but they don’t take huge hits.

Buying foreclosures is an exhilarating experience but there are many homes out there that have just as much potential without wearing the big red “F” on the front door. Talk to an agent that is familiar with the area you you wish to purchase. He/She will know the homes and the good deals. Short sales, and finding homes that are about to be foreclosed can be just as economical.

Currently Big Canoe real estate listings show approximatly 6 foreclosures. Call me or visit my site for more information. I’m happy to help you find a great bargain home in a community where you’ll be happy.