Foreclosure in Singer Island>Question Details

J.P., Home Buyer in Tampa, FL

What are the benefits or drawbacks to expanding my home search to include FSBOs and foreclosures?

Asked by J.P., Tampa, FL Mon Apr 23, 2007

How does the buying process for foreclosures or FSBOs differ from homes sold by agents?

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11
this question posted Apr 2007.

I'm sure JP has moved on, so should the rest of us.
0 votes Thank Flag Link Sat Aug 16, 2014
If you find a home FSBO and a good price their is absolutely no difference between fsbo or listed with an agent. As far as disclosures people omit things all the time from disclosures. You would have to prove a homeowner was aware of the problem which is very difficult to do unless you have documentation of some kind. Many people list and sell their homes on their own and list them on Zillow where majority of people look on their own to begin with. Some of those people list their home way above market value and they won't sell. The same thing happens with homes listed by agents. Point is it doesn't matter either way if the home is priced right it will sell. It certainly saves you a lot of money as FSBO and you consult with a real estate attorney to handle the contract. They are your best source to protect yourself and it's not going to cost you anywhere near 6% of the selling price.
0 votes Thank Flag Link Sat Aug 16, 2014
There is a big difference. Bank owned homes are a great way to get a bargain but only if done right. Know you may need work, inspect the home prior to making an offer and know how the sale of a bank owned home works. With a FSBO it is a different type of caution as you want to make sure the state and local disclosures are filled out, sellers may leave something out on purpose or by accident. Having an experienced buyer broker can help you with any type of sale and let you know the pros or cons of each.
0 votes Thank Flag Link Sat Aug 16, 2014
It is strange how many of the same questions you have asked about so many places. Seems very fake.
0 votes Thank Flag Link Sat Aug 16, 2014
I think that the biggest benefit is that you will have many more homes available to you! I think that it is a valid choice! :)

David | Water Well Drilling
0 votes Thank Flag Link Mon Oct 14, 2013
Thank you for your question about the benefits and drawbacks of purchasing a foreclosure property.

The benefits:
-Approximately 28% cheaper than comprable non distressed sales

The Drawbacks
-Hidden defects
-Title Discrepency

The benefits for most, money, far outweigh the drawbacks since distressed properties account for about a third of sales during any given month.
0 votes Thank Flag Link Wed Nov 17, 2010
Well, you cannot purchase a foreclosure without an agent, unless at a Real Estate Auction.
Why? The foreclosures all have to be on the MLS and listed with an agent, to be sold. The banks do not
want to, or have the time to deal with each buyer directly.
I would suggest you use a Buyers Agent that is experience
in selling foreclosures, this will save you alot of money and headache.
On the process: You do receive a clear title and the taxes are paid up to closing. You need to inspect the property before an offer is made, for you own information. The homes are sold as is and the Seller( the bank) will not do any repairs. (of course there are always exceptions, but this is the norm, dont bank on them fixing anything)
If you are financing, you need to discuss with your lender what type of home you can purchase.
If you are min down, the home will need to be livable, and a working home, with no major repairs, and no moisture problems or mold.
On FSBO, use a Buyers Agent, most likely the home is overpriced, and your agent will pull what has sold in the area, to help you make an offer. If a FSBO refuse to allow you to walk thru with your agent and compensate the agent, then walk away. In this market, a Seller that is not hiding any thing, and is really wanting to sell and not
just testing the market, will work with you.

Again the Best Advice is to use a BUYERS AGENT in your area that is experience.
Good Luck

Cathy Hallow
Realty Executives Target 708-710-5374
Web Reference: http://cathyhallow.com
0 votes Thank Flag Link Wed Nov 17, 2010
The drawback to foreclosures is that you may not know what you are getting into if you have not done a title search and do not know what you are buying. If the second is foreclosing then the 1st still has the primary lien on the house so you'll be wasting your $$$. Be smart and be willing to pay a Commission to a Broker to help you do your due diligence. If you do that you can come ahead with a deal!
0 votes Thank Flag Link Wed Nov 17, 2010
J.P.
Foreclosures will take more time to get an approval from the bank once you submit your offer. FSBO's can be OK, but I highly recommend using a Realtor or rela estate attorney to represent you during the purchase.
0 votes Thank Flag Link Wed Nov 17, 2010
One drawback of foreclosures is that you will not be able to finance it. The county will require full payment by 5pm. You should look at pre-foreclosures. In this situation you're able to finance the purchase. Working with FSBOs will require a lot more work on the buyers side.
0 votes Thank Flag Link Sun Jun 17, 2007
Herman Chang, Real Estate Pro in Palm Beach Gardens, FL
MVP'08
Contact
A home search should be as inclusive of all properties that meet the specification of the Buyer. Whether dealing with a listed property or an individual trying to market their condo/home on their own, or approaching a bank regarding a foreclosure, a professional and earnest approach to evaluating the property and extending an offer is appreciated by all. Independent commission arrangements can be made between the Seller/Bank and Buyer as the need arises. The important things it to locate properties that meet your need and are valued correctly.
0 votes Thank Flag Link Mon Apr 23, 2007
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