Foreclosure in The Woodlands>Question Details

Stephan, Home Buyer in San Francisco, CA

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

Asked by Stephan, San Francisco, CA Mon Apr 23, 2007

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

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I agree, expanding your search may be the answer. You just never know what is out there. Buying a Foreclosure is different in the aspect that there are NO Disclosures. Meaning, you will not know a history of the home or if there were any problems with the home prior to the owners moving out. You will have to rely on a catchy Inspector for specifics. As far as FSBO, if you are not using a Realtor, ask for a Seller's Disclosure. Contrary to the belief of many, it is possible to use an agent and purchase a FSBO. I recommend a Real Estate Professional.
3 votes Thank Flag Link Sun Jul 15, 2007
Foreclosures can be especially painful transactions to close. Even with all of the foreclosure problems that lenders are experiencing, they are still very difficult to work with on these deals, for the most part. As a rule of thumb, the bigger the lender, the less motivated they will act in putting a deal together. Hopefully this will change but until then, I would not pursue a home in foreclosure unless you have several months and will not be financially hurt if the deal fails.
0 votes Thank Flag Link Fri Oct 24, 2008
There are drawbacks to FSBOs and foreclosures without an agent because you have no one who is licensed and educated to helping a buyer get the best deal that they can possibly get!
0 votes Thank Flag Link Mon Apr 23, 2007
Expanding your search to FSBOs and foreclosures may just help you find the home that you love! However, the process is a bit different. With a FSBO, the owner may or may not welcome your realtor. If you are not going to use a realtor, be certain to hire a real estate attorney to make sure all is legal and binding. If you're going to search foreclosures, know that you may or may not get a better price, but that you will probably need to do some work on the property (paint, carpet, etc.) so sometimes the difference in price does not make up for the work that the property will require.
0 votes Thank Flag Link Mon Apr 23, 2007
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