Foreclosure vs. non-foreclosure properties... I think the most important issue for you to know is that mortgage guidelines require that the appraisal on the property show that the home is in average to good condition. Many foreclosures will require repairs and normally (not always) the Bank will NOT be willing to make repairs prior to closing. If you are willing to purchase a property in its existing condition when it will not meet appraisal requirements your financing options change. You always can pay cash but if you need financing you will want to consider a "re-hab" or "construction" loan which will be obtained through a local bank or, if it is for your primary residence, you could consider an FHA 203 K type of loan which is also referred to as a rehab loan. Hope this helps you in your decision making.
With so much on the market, you may be able to get just as good a deal, without the hassle and headaches, from a regular resale transaction.
As stated by the other answers typically the seller pays a buyer's agent unless otherwise stated in the contract. When buying a home that is not a foreclosure and is owned by the actual occupant you will find a seller's disclosure which discloses the property condition along with past and current problems. These home are typically not being sold "AS-IS" meaning that if there is or was something wrong with the home the seller can be held accountable for either making the repairs, renegotiating a new sales price or paying for more of your closing cost. As a buyer you are always advised to get a home inspection but a lot of "Foreclosures" simply will not repair anything. Buying a Foreclosure can be a great deal but the process can be very frustrating depending on the listing agent and the bank that owns it and always takes more time than a home that is not in Foreclosure. Remember, regardless to GET A HOME INSPECTION! Visit me at http://www.HomeLoanKC.com .
Yes, the price/repair ratio is much better. An individual seller will be easier to deal with than a bank.
The Buyer's Agent gets paid from the proceeds of the Seller.
I always like to answer questions like this with a "If it was me" reply so, if it was me I would look for resale and deal with the seller's agent.
Hope this helps.
John P. Thompson
A buyers agent is paid by the seller from the proceeds of the sale, or as otherwise defined in the contract with the agent.
Pre-foreclosure or short sales can be a great deal, but they can also be frustrating because of the time involved. Most lenders are looking for multiple offers and will wait for them. They often respond with a request for "highest and best offer".
This will mean that you are actually in a bidding competition with other buyers and usually do not know what their bids are.
D. Ben Edsall
Broker â€“ ARM, AEREP
Turn-Key Properties LLC
7312 E 67th St.
Kansas City, MO 64133