Betsy,
You have a lot of opinions here so I will just throw in my two cents. It depends on what stage of foreclosure the home is in. If the seller is facing forclosure, they may be willing to negotiate a lower price with you. If the home is already foreclosed on and owned by the bank, they want to get the most money for it similar to a seller not facing forclosure. So it is a mixed bag. The bottom line is that everyone wants to get as much as they can for a home. You on the other hand want to find a home you love, whether or not it is a foreclosure or not.

Sun Jun 8 2008, 14:25

Depending on your definition of a good value?
Work with a real estate agent( short sale or foreclosure)that knows what he/she doing. If it;s a short sale; a complete package is a most. Litigation department don't have the time to deal wth un completed package. Make sure you know the true condition of the property ( most short sale are in pretty good shape at least here in Chicago, Il) so it could be communicate to the litigation dpt. by whom ever handling the negotiation with the agent . One number that you really need to know is the BPO.
Broker Price offer. The Lender and the investor do pay attention to this number.
Good luck

Wed May 28 2008, 17:15

Really it depends on the property. I've sold foreclosures, short sales, HUD auction homes etc. Not all are great investments. My advice is to find something in your price range that has good appeal for resell and is in an area that will appreciate well. If it happens to be a foreclosure that has some equity in it already, great!

Thu May 22 2008, 22:58

Betsy - That's a loaded question. Foreclosure is probably not your best option but a bank owned property might be. If you truely are looking in Renton there are a ton of good deals to be had including pre-foreclosures, short sales, bank owned and the straight resale. You should look at all of your options.

Thu May 22 2008, 22:55

Generally speaking, false. I agree with most of the comments by the other agents here. For most first-time buyers the process and potential pitfalls of the deal can be depressing. Foreclosure sales are for the experienced real estate buyer or the professional investor that have no emotional stake in the outcome. As previously noted they are usually in poor condition and can need a significant amount of repair.

If you feel you have the financial wherewithal and emotional fortitude to look at foreclosures, be sure that the agent that represents you is a real specialist that works exclusively on those types contracts.

Tue May 13 2008, 10:24

Hi Betsy, I am a Realtor on Marco Island, Fl.This is not correct in our market place. There are other excellent buys by sellers. Difference is one is no problem, short sales are plenty of problems and aggrevation. Pricing on short sales are what you think you will be
willing to pay for the property, same as any other property you are looking at. Difference is that you will have to wait in one case with Countrywide 4 month and NO answer, not even any contact with the bank, no way to contact them as a Realtor and owners are not getting anycooperation either. My first two short sales with another bank were a piece of cake compared what is happening with Countrywide. After this transaction I will not deal with any other short sales or preforeclosures. Difference is that many of those properties were bought at the heigth of the market and they are really not the great bargain many buyers think they are. You can buy a property from an owner who has owned the property for 5+ years and they can afford to sell it, still make a smaller profit and get back to you within 24-48 hours to accept the offer. If you can find a property you like as much as the short sale go for the other property. By the time you wait for the bank to give you an answer you might loose other well priced properties. Until banks learn to work with Realtors in a timely fashion this housing crisis will go on for a long time. More and more Realtors here are saying "we will not get involved in short sales". I think our government need to intervene and make banks more responsive to this situation , after all they take big tax write offs for their losses but do not want to work with the buyers which are also taxpayers and are underwriting the mistakes the banks have caused.

Tue May 13 2008, 09:14

False. Foreclosures sometimes are a good value. Sometimes they're not a good value. But certainly not for a first-time home buyer.

An analogy: "I've been told that the Boeing 757 is the best plane for me to fly as a novice pilot. T or F?" Well, the 757 may be the right plane to fly for a 2,500 mile trip. (It has a maximum range of 3,395 or 3,900 nautical miles, depending on configuration.) But it wouldn't be the right plane to fly between Washington, DC, and Richmond, Virginia, or between New York City and Tokyo. So, under the right conditions, it's the "best" plane. But for a novice pilot? No way.

Same here. As a first time home buyer, look for a good value and a smooth transaction. That means avoiding foreclosures and short sales. There are plenty of good "traditional" values out there.

Good luck.

Tue May 13 2008, 08:15

Not true, A home that is exposed to the market correctly will always go for full market value. It is true that a REO (bank owned) home could be lower than other homes on the market, but the reason for the lower price is probably the condition of the home. A good listing agent will get full market for a home in any market. In the Sacramento area we are seeing multiple offers on homes that are priced correctly. I currently am specializing in listing short sales and we are even seeing multiple offers on those listings as well. Like a said, a home that is marketed correctly will go for full market value. It is your own perception of what is a good deal.

Tue May 13 2008, 07:46

With such a soft real estate market, look at all properties. Many agents know of sellers "struggling" who will take very low offers--lower than foreclosures.

Tue May 13 2008, 05:55

Many foreclosures are owned by people who have little equity in their homes. If there is a lot of equity, there is more room to negotiate. If there is not equity, the only party to negotiate with is the bank in a short sale. Short sales require patience and the ability to weather ups and downs. Answers will be unpredictable and schedules will be challenging.

If you find a foreclosure property and the seller has a good equity position, there are some possibilities for good deals.

Also, check into bank owned properties. These are properties where the foreclosure process is complete and the bank is the seller. Bank owned properties are usually priced competitively.

Wed May 7 2008, 16:21

I don't agree that foreclosures are the best value for you as a first-time homeowner. In the pricier neighborhoods, foreclosures & short sales are not readily available typically. Because these folks manage to scrape up enough money to get out of trouble. You should go to a sale at the steps of City Hall with someone that has done them, and can explain the process - pros & cons - to better understand the process. Everyone else is getting the same pre-foreclosure list as you.

I'd suggest instead to pick up a property that is in a short sale. I know a CPA and that's all he does, short sales. I don't understand why they offer realtors classes on how to do short sales - unless that is what they want to focus on. You just can't succeed in foreclosure or short sales if you don't dedicate yourself pretty much full-time. There are too many nuances, and now state law changes to these types of sales and dealing with the bank, proper language in the Purchase & Sale.

My past experiences in short sales have been very profitable & reasonable - because I worked with the CPA as a team, to get them. So if you have a team approach with solid experience from team members, that is the only way to make money on these type sales. Or, work with an attorney in this area that provides you leads, with an agent that knows the area, and get a thorough inspection so you know what you are in for. You can't just do one or two a year. Good luck with your efforts!

Wed May 7 2008, 16:14

Buying a foreclosure can be a fortune or devastating experience. At the end of March 2008, I & a couple of my buyers closed one of these transactions. We were keeping our eyes on this particular property, until it got to a price were they were willing to make an offer.

I've always recommend inspections and enough time to do them, and here there was no exception; because, while the property had a great buying price it didn't mean it was a great house. My clients, at their option, waved the inspection. Fortunately for them, until now, they have only spent about $ 1,200.00 to make it habitable.

While this was not a devastating experience, it is extremely important that you as a buyer understand the disadvantages of buying a foreclosure. These institutional sellers want to sell their properties at standard market price with out the standard advantages. A private seller, most of the time, is willing to renegotiate the outcomes of the inspection and a few other items. With foreclosures, you even give up the right to complain to anybody for any minor or major wrong item with the property, and this is were the money spent in your inspections is well justified.

You should be willing to loose the cost of the inspection instead of loosing a more significant amount. If something doesn’t make sense get questions answered. Realtors are not law practitioners, but if your question involves legal advice she / he should let you know to consult an attorney.

Wed May 7 2008, 10:10

I agree. In such a tricky market look at everything. You may get a better deal from a desperate seller than a bank foreclosure.

Wed May 7 2008, 04:29

I personally buy foreclosures as well as buy them for customers. It is a tremendous amount of work to find a good piece of property and when you do you will be in competition with other investors, some who are as smart as you are.
I agree with not limiting yourself to just foreclosures, but I would at least look at them alongside the other inventory out there.

Tue May 6 2008, 20:33

Depends upon your situation - and risk level. Foreclosures CAN be incredible values, but they can also be risky, because you are usually walking into a home as-is. So, there may be hidden costs that are not disclosed to you. Are you of the personality willing to sacrifice security for cost?

Thu May 1 2008, 11:29

I don't believe so Betsy. First of all, there isn't a lot of foreclosure inventory in the Eastside to pick from. Second, if you do find something you'll be competing with investors who have a lot of cash and can probably make stronger offers than you can. Finally, it's a misconception that banks give their repossessed homes away at bargain prices. These homes are appraised and generally listed at near market value. Just tell you agent to get into the entire MLS database and find you the best buy. If you limit your search to foreclosed homes you'll be missing a lot of opportunities, perhaps the best ones.

Thu May 1 2008, 08:00

It depends on a lot of factors. First of all they are often very difficult transactions to actually get closed. Often first time buyers are working with limited cash to close so if there are any "hick-ups" reserves to deal with problems are limited. Most often homes in foreclosure have not been maintained as well as others so there may be a lot of work necessary to bring the property up to an acceptable standard. If you are working on a "short sale" transaction the time frames for approval may be daunting. There may be costs that don't appear until the end of the so unless you know the process or have a realtor that does, it can be challenging. I'd say do as much research as possible and don't get attached to a house, look at everything objectively and investigate everything. Thanks for asking.

Wed Apr 30 2008, 23:45