Hey. I need some knowledge bestowed on me. My fiance and I are buying house within the next month. We found one that's a bank owned foreclosure that would be a great buy. The real estate agent was acting real funny about it. Trying to talk us out of it but it was pretty much in the same neighborhood as the others, had more square footage and cost less.

We're just trying to figure out if she was trying to steer us away from the property because her commissions would be less?

Realtors chime in.

 

The commission is usually double what it is to purchase another home. Instead of the selling agent getting 3% they usually get the full 6%. If they are steering you away from it that's probably because there's something wrong with it.

Except for the "B" loan foreclosures and some in areas where values have dropped a lot recently (your area might qualify for the second reason as Florida has the highest foreclosure rates in the nation at 6%) you have to ask yourself WHY was this house foreclosed upon and will that same thing bite me when I need to sell it?

Very few foreclosures are people related, they usually are property related. I'm betting the house is very near a shopping center, major street, school, high tension power lines, an apartment complex,etc., etc. All things that make the homes unattractive to the average purchaser.

Then there could be issues with the house itself like foundation troubles, roof, etc. Also keep in mind that foreclosures are usually sold as-is at time of closing (which means that any damage that happens after your contract date and before closing is still you isssue) and with no warranty.

 

is it a short sale? if so could take about 3 months just to close on it, not sure how fast you are trying to buy. For the most part the realtor wants you to be happy because in real estate referals are one of the biggest things they want to make. Hell my realtor just wanted my referal at the end of it and even gave me a 200 dollar gift card to home depot when I closed.

My realtor was very helpful with finding the things about homes in the area that I might of known about, granted I was new to Arizona when I bought. Just closed 3 weeks ago


bigger and cheaper usually isnt a good sign though the bank might just want to get rid of it.

 

It's bank owned not a short sale where the owner gave up all rights to make a profit. I think part of the reason is that the MLS listing doesn't have a picture... and foreclosures take a while to process.

My realtor told me that there were improvements done without permits...

How's that going to affect me?

 

Theres nothing wrong with bigger and cheaper. The housing market is a garbage right now and banks are looking to minimize the loss and get these houses off the books. Get an inspector to look at the house and see if anything is wrong. Thats the only way you can be sure.

 

That's what we're thinking. We' just dealing with having too many home choices. Each one has it's pros and cons. It's just us deciding on which one.

 

Thats the hardest part. Just remember, if you arent in love with it, look elsewhere. Theres plenty of homes to be had and this is a huge investment

 

Proceed with caution. Once you own the home, any previous liabilities that run with the property become yours. That could range from liens to violations to structural issues to cement in the drains. If you are confident that you are getting a good enough deal to overcome these potential risks, then go for it. But remember, you'll have no recourse, none, as these are a 'where is, as is' sale.