Congrats on deciding to buy a home of your own! Your first step is do get pre approved for a mortgage loan.
Once you secure loan approval you will need a dedicated buyer's agent. One who is not too busy to dedicate the time needed to work with a first time buyer.
Buying your first home can be fun, stressful, hard work , and rewarding. Your agent will search for homes for you, you do not have to follow homes if you have an agent working hard for you.
Keep in mind REO homes are sold AS IS for the most part. If you do not have cash reserves and time for repairs, you may want to shy away from REO homes. Pre Foreclosed homes are not available for sale and some of them to not make it to the open market as they may be sold at "ALL CASH" trustee sales.
Best of Luck to You,
Kawain Payne, Realtor
here is a blog about real estate in general. http://blog.house-guy.com/category/buying-a-home-2/
NY State Licensed Associate Broker
Keller Williams Landmark II
Mobile: (917) 734-2012
The lowest prices in many cases are NOT pre-forcosures, but Government REOs, HomePath and HomeSteps homes for sale can be very good value.
Your first step, is to find a local Realtor who has experience working with First Time Home buyers, not foreclosures.
Condos are the hardest to get financing for and many for forecloses financing are also not possible. or too much work needs to be done. Rent and watch the movie "The Money Pit." if you are thinking about a fixer upper for a first time home.
just because the PRICE is Low, does not mean it is a good deal for a First time buyer.
If you are a first time homebuyer, many of the foreclosed properties may not work for. You are better off looking for a home that you are able to move right into, that needs very little or no repairs. Your lender may require this as well.
When you look at foreclosed properties, keep in mind that they are bank owned, and that the pervious owners may or may not have taken care of the property, so the property may need some work. Most banks sell these properties in "as-is" condition, whereas, they will not do any repairs nor give credits for work done. You may get lucky and find the gem that needs little or no work...these are rare. Foreclosure properties also will be listed at market price...so you may not get any break on the price because it is a foreclosure.
So, it may be in your best interest to look for properties that are in good, move-in condition, not just foreclosures.
If I may be of assistance to you, please feel free to contact me directly.
All the best and Good Luck!
Kat Becker, Realtor
Prudential California Realty
Following pre-foreclosures will not yield you any real results. It can take months for them to actually become REOs. Besides some homeowners are successful in getting out of pre-foreclosure.
My advice to you is to get yourself pre approved for a mortage, then find yourself an agent for buyer representation.
Keep in mind with condos you will have to pay a monthly HOA fee in addition to your monthly mortgage payment. Also make sure to have your agent verify the condo complex you are interested in is FHA approved if you wull be using FHA financing.
Best of luck to you.
Kawain Payne, Realtor
NMLS # 6395
Financing Kentucky One Home at a Time
As first time home buyers, it's easier to buy a house or a townhouse (but not a condo physically looks like a townhouse, but it is legally a condo). The reason is you'll be buying with financing...and banks don't finance all of the condos - only those that meet their guidelines.
For FHA financing - check out what condos in your area are FHA approved.
Go to http://www.FHA.gov - put there your state and zip code.
For Fanny Mae (conventional) financing - you'll need at least 10% down - go to EFanny.com.
There are Fannie Mae and Freddie Mac foreclosure programs that allow to buy in the buildings
that are not otherwise financable. The programs are Homepath and Homesteps - one their namesake websites.
An experienced agent will help you in your search.
Best for short sales - CDPE designated agents - you can find them on http://www.CDPE.com.
CDPE stands for Certified Distressed Property Expert.
For foreclosures - Certified REO Specialist.
Don't overlook the normal sales though, where sellers will respond quickly and often will be willing to negotiate. Foreclosures are priced to "tease" and often cause a bidding war. Short sales are very complex and not all get approved, while lasting way too long....
Best of luck and hope this helps,
Beachfront Realty, Inc.
Pursuing these is not necessarily the best way to get a low price. Distressed homes tend to get multiple offers, usually pushing the sales price OVER the list price. Your ability to effectively buy in this arena will also be impacted by how much you have to put down. Investors and others with large cash deposits often win these bids leaving the average Joe out of the mix.
Within the past 18 months, I've gotten the best prices for my clients with an old fashioned traditional sale. Banks don't tend to negotiate, sellers do.
First I would like to say that Nancy is right, but most pre-foreclosure homes or short sales are on the market with Realtors because sellers can't do it themselves and banks are paying realtors fees so why look on your own? Sellers pay commissions so you can get an agent to help you find a property... They do much more then just find a property, they write offers, check title, and the foreclosure homes are rarely open to the public, you need an agent to get in. So looking on your own?? Are you pre-approved for a loan?
And here you are on Trulia, asking REALTORS what to do?
FIND an area specialist, that would be your answer, with experience.
I strongly suggest you have a buyers' agent help you. This is a major investment so use a professional . Plus in most cases they are paid by the Seller. It is not just locating a home the meets your needs but assessing its value and negotiating and setting the terms plus steering you through the maze of inspections and due diligence. Penny wise, pound foolish. It's not even your penny, Don't do it!
Homes are usually priced at market value and some are priced in "as is" condition, so there is opportunity to buy at a low price. Keep in mind, with interest rates so low, turnkey homes are sold very quickly, requesting little to no closing costs. It is important to know what your needs are and what you are willing to pay for in a particular home. A pre-foreclosure is a short sale home, foreclosed home is an REO home - the market is very low with REO homes right now.
Selecting the right agent is important, interviewing is your best bet. Should you need to interview agents to assist you with your first home, Id like to be an agent you interview. I have extensive experience working foreclosed homes and I am very knowledgeable of the current foreclosure market. I can assure you I will represent and guide you with the purchase of your first home.
Best of luck, Nancy
There is absolutely no reason for you to try look for yourself when a Buyers' agent costs you nothing, and can very often save you a lot of time and give you the guidance you need while protecting you from the pitfalls you might otherwise encounter.
Just make sure you do not sign a Buyer's agreement which locks you into one certain Agent, in case you decide you picked the wrong Agent and want to change. Many good Agents are willing to work with you without a Buyers' agreement.
Prudential California Realty, Los Feliz
20 Years of Sales and Service
I ussually work in several areas like San Gabriel Valley, El Monte, Baldwin Park, West Covina, La Puente, Azusa, Pomona, Ontario, Rancho Cucamonga, Fontana, Colton, Mira Loma, Corona, San Jacinto, Riverside, Moscoy, Hesperia, Victorville, Lancaster, Palmdale, Chatsworth, Reseda and towns around. Please give me a call (626) 825-9444 and Get More: "Maximum Service, Maximum Results" Alvaro Lozano CA DRE LIC 01360485. Thank you
Depending upon the area you are interested in I'd be happy to assist you further. I have worked with many many first time buyers and the process of buying a home requires a careful and diligent buyer's agent especially if you have never been through the process. Please feel free to contact me anytime.
While many distressed homes may appear by price to be the "low price" there are other factors such as deferred maintenance or other repairs that sometimes are difficult to achieve in the negotiation process on those type of sales. In pre foreclosure (short sales) the investor will rarely pay for the delinquent condo HOA dues so while the purchase price may appear low, there may be costs that you the buyer will need to pay in order to close.
I'd just suggest that you be open and try to find the best property you can within your budget.
Please let me know if I can help with any other answers. I know a number of great agents in the Los Angeles area that may be a good fit for you!
Byron Lohman, ABR, CDPE, SFR
Prudential CA Realty