Home Buying in 19153>Question Details

Mrsyadavis20…, Home Buyer in 19153

Why is it so difficult to find a realtor that is willing to work with a buyer who only wants to purchase a foreclosed home?

Asked by Mrsyadavis2010, 19153 Thu Dec 16, 2010

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Often, it's because buying a foreclosure can take a lot of additional time and effort.

But beyond that, you've already laid down a pretty questionable criterion: You only want to purchase a foreclosed home. Generally, buyers specify the number of bedrooms and baths. And/or location. And/or school district. And/or garage or swimming pool or fenced yard. Certainly price. All of those relate directly to the needs of the buyer.

But restricting your search to foreclosures? Why not tell a Realtor that you only want to look at houses where the house number ends in an even digit? Or houses on streets named for trees (Elm, Oak, Pine, etc.). Or houses previously owned by someone who graduated from college?

Well, that's what you're doing. You're introducing a requirement that has nothing to do with the quality of the home or how it matches your needs. You're even saying that your primary concern isn't value. After all, there are plenty of good values in non-foreclosures, and not all foreclosures are good values.

Now, having said all that, there should be plenty of Realtors out there who are willing to work with you. (I'm pretty sure some will respond to your question here.) But you're ruling a lot of them out--and you're trying to jump over an unnecessary hurdle--when you announce that you only want to purchase a foreclosure.

Hope that helps.
2 votes Thank Flag Link Thu Dec 16, 2010
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
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Don's answer is excellent. Many agents don't want to take the time/effort to deal with foreclosures. Period.

I would not be searching JUST for foreclosures. Many buyers think (incorrectly) that foreclosure = "a steal" or bargain. That is not always true. You may find a great house that is not a foreclosure and may get a great price on that one as well. Don't limit your search by foreclosure or not. First look for the neighborhood, price range and type of home you like, then figure out which one you want to buy -- whether or not it is a foreclosure.
1 vote Thank Flag Link Thu Dec 16, 2010
If you are looking for foreclosures in the 19153 zip, it would not be worth all the time & effort on the sale price. This is a low income area which is not worth all the time & effort of a realtor. I would suggest trying to work through the city's auctions. The homes are no longer moving in this area due to the lack of intrest of buyers.
0 votes Thank Flag Link Thu Mar 8, 2012
I would have to agree with Don. Why limit your choice to foreclosures? If a home fits your needs and budget does it matter whether it is bank owned or not?

I think many of us feel that some one who only wants to talk about foreclosures might not be prepared for everything involved. Many will have an unrealistic expectation on what they want to offer. With a bank owned home there likely won't be any Seller Property Condition Disclosures. This isn't a guarantee that there are no undisclosed problems with the property but the disclosures can help with a buyer's decision. In many cases the utilities have been disconnected and the home has been winterized. To do a proper inspection it will usually fall on the buyer to pay the cost of restoring the utilities and to winterize the home once the inspection is done. The alternative is to buy "as is". This may be ok for someone with cash but if you need financing I's not likely a lender will be as willing to work with you. Foreclosures tend to have damage. If the repairs need to be evaluated there might be some expense just to find out how serious the problem is.

As professionals I think we owe it to the client to see that they are prepare them for these possibilities and willing to accept the risk and expense involved. There is the potential for some substantial savings but be sure you are up to the task. I personally would rather loose a client that to sell them a home when they aren't fully informed.

If you feel comfortable with the process, then by all means find an agent and let them know that you understand and are prepared for the risk and are willing to spend the money necessary to get the deal you want.

Good luck!
0 votes Thank Flag Link Thu Dec 16, 2010
When you say a "Foreclosed Home" that to me says one that has been foreclosed and is now bank owned. These are easy to sell since the bank has now placed a dollar figure they will sell it for on them and they are usually discounted below what they sold for when the bank placed a mortgage on them. The biggest down side is that they are sold AS-IS and the bank will not make repairs. Often the house is stripped clean, but they are not hard to sell. Bank owned homes are the biggest market seller in my market right now.

Trying to buy a home that is near to being foreclosed is difficult because there is no commission offered and it's not listed for sale so they can be hard to even find.
0 votes Thank Flag Link Thu Dec 16, 2010
It must have something to do with the area...in our location agents would be banging down your door to work with you......
0 votes Thank Flag Link Thu Dec 16, 2010
There are plenty of agents who would be more than willing to help--therefore consider interviewing agents from different realty companies and choose the one you like best--when searching for foreclosures, keep in mind not to rule out any traditional sales, as some may turn out to be a much better bargain.
0 votes Thank Flag Link Thu Dec 16, 2010
Good Afternoon Mrsyadivis20;
If you're calling at midnight to find a Realtor I guess it would be difficult.
During business hours you should have a floatilla of agents ready to step up to the plate.
Either call or visit a local brokerage; or even use the "Find a Pro" option right here on Trulia!!
Good Luck!
Web Reference: http://www.321property.com
0 votes Thank Flag Link Thu Dec 16, 2010
Mrsyadavis2010 I have worked with may buyers who have the priority of looking at only forclosed homes. Under these conditions the buyer has to be preapproved for a loan and counseled on the 203k rehab process. We will normally look at homes that run no more than 30k less than the buyer preapproved for because of repair costs.
Forclosed homes are normally not in move in condition so be prepared to not have to move in until after the rehab is done.
Of course there are exceptions to every rule and I have had clients purchase forclosed homes that the lender has rehabbed and they are normally available at near normal neighborhood value.
0 votes Thank Flag Link Thu Dec 16, 2010
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