For the month of January and February 2011 I’ve written more foreclose contracts than I ever have before. The volumes of distressed properties for sale are still growing, while interest rates are slowly rising. It’s still good news for value oriented byers to buy foreclosed properties. There’s a greater degree of comfort among investors and lenders now that they know where prices are, “which makes them more willing to sell”, says Patrick Sargent.
Don’t expect to purchase many of these foreclosed properties for little of nothing. Foreclosed properties are initially marked down by 30% from market price. These properties can sell for a little of nothing or sale at their listed price. Take these two examples: I had two different foreclosure properties in good condition. They were both pretty much turnkey with two different Asset Managements. On property (A) we were able to get about $3000.00 off the listed price and 3% of closing cost paid. I had another property (B) that was VA Foreclosure. I have to admit if you saw this house you would want it as your own home. Great Neighborhood! The house looked amazing from the stained concrete drive way to the ceramic tile throughout the house. All of the fixtures looked great and there was refreshing paint flowing throughout the house. Go figure, a foreclosure, no way. Yes way! But the bank wasn’t budging from the price. In order for us to get the 3% closing cost from the (REO) department or Bank, they wanted us to go up on the price. The house was a deal either way you looked at it.
***Always remember with foreclosures there are additional fees buyers may have to pay like the survey, title policy, re-wintering, federal expressing packages, and the possibility of losing the home inspection money if the house is taking off the market due to a missing deed.
Call me for more information: 254-285-4282