Home Buying in Great Falls>Question Details

Surfnsnow_9, Home Buyer in Great Falls, MT

Foreclosures. Worth the effort?

Asked by Surfnsnow_9, Great Falls, MT Mon Aug 22, 2011

I always see the foreclosure ads on here and am curious if the quoted prices are anywhere close to reality. Can good foreclosure deals be found in this market?

Help the community by answering this question:


Remember that while foreclosures can be good deals they are sold "AS IS" and are often in need of repairs and updating. As they say "buyer beware".
0 votes Thank Flag Link Tue Aug 23, 2011
Even though Great Falls never had the big bubble and the big bust, there are still good deals out there in Foreclosures and also in Short Sales if you are patient. Some of our upper end properties have taken a hit, but the mid range properties have held their own, and some have even gone up in value. If you have a little help you can find the good deals immediately when they become available.
0 votes Thank Flag Link Mon Aug 22, 2011
You are half right:
Foreclosures are great for Buyers: The Prices are really attractive and a good starting place for a family.
The LISTING PRICES are not necessarily so:
Understand that the LISTING PRICE has one primary objective, to attract attention: It is not intended to be set in stone, and in many cases it is not even a good guideline toward the SELLING PRICE.

Some Sellers believe that by setting the LISTING PRICE high, they can always come down, and people will make an offer anyway: WRONG! Buyers will just bypass the property and look at houses that are within their price range. And six months from now, the Seller will slowly start lowering the PRICE, (this is called “chasing the curve”) and Buyers will be asking the question; “What’s wrong with that house?” and “Why has it been on the Market so long?”

Other Sellers set the LISTING PRICE low, to attract multiple offers. (The correct strategy.) We are asked; “Aren’t you obligated to sell at this price if someone offers it?” The answer is probably not; for that to happen, you would first have to have only one offer, and secondly, the offer would have be exactly the same, down to the smallest detail, (please discuss this with your Realtor).
Another thought; Buyer will search for potential properties by groups; for example, $400,000 to $450,000, and $250,000 to $300,000. If your house is priced at $460,000 or $310,000, the Buyers will never see it. (something else to discuss with your Agent.)

We have found that extremely often, the LISTING PRICE that is set on SHORTSALES and REO’s are not determined, nor even discussed with the Bank: The banks play their cards very close to the vest, they will not tell the Listing Agents any more than they have to; they will not give us their lower limits. So usually, the LISTING PRICE on a distressed property is a number taken out of the air.

If you are considering a property, have a Realtor do a CMA, (Comparative Market Analysis) to help you determine your Offering Price. If you look at enough CMA’s, you will see the trends.

Good luck and may God bless
0 votes Thank Flag Link Mon Aug 22, 2011
Yes they can! You should hire a real estate agent with this expertise and see what's out there.
Web Reference: http://www.321property.com
0 votes Thank Flag Link Mon Aug 22, 2011
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2016 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer