Foreclosures and short sales now make up over forty percent of the sales in the metro area. Buyers of these properties can receive an excellent value. However these homes do come with risks that you need to be aware of. The biggest concerns are the lack of disclosures on the properties and the risk of not getting clear title.
Some of the questions to ask yourself before you consider a foreclosure or short sale are;
Are you willing to wait two plus weeks for a response to your offer?
Are you willing to risk your earnest money if you change your mind before closing?
There are no disclosures, that means you by the house "as is" and you'll have no recourse if you find any problems after closing.
The seller (bank) may request that you be approved by a lender of their choice even if you have a pre-approval letter.
Do you have the money to make the needed repairs to the home after closing?
Do you have a place to live while work is being done on the home?
The appliances have often been removed or could be removed before closing; do you have the money to replace them?
With proper guidance foreclosures and short sales can be excellent values but know going into the process that there is a reason these homes are being sold under market value.
If you would like to receive a list of foreclosures as they come on the market please call or email me with the criteria (areas, price range, bedrooms, baths, garages, etc.) you are interested in and I'll set you up on an automatic search. The best deals go fast so having advance notice on new listings increases your chances of getting a great deal.
I have helped several buyers purchase foreclosures and short sales please call or email me for more information.
Michael Doyle
Realtor
Edina Realty
