Randy,
Can you bring me some buyers!!! You are the type of sales person I want representing the buyer. When I was looking through all of the foreclosures, one of my pet peeves reared its ugly head again - "as-is" "no survey". I've bought "as-is" properties and I don't have a problem with that, what peeves me is the banks and HUD are trying to "SELL" the home. Disclosure is one thing but putting the legal fine print as the sales description is ridiculous.

Kristel: I agree completely. I think what I was looking for was if the agents are educating the buyers as to the added risk and/or fix-up costs.

Sylvia: Yeah, I can't even comprehend a 3/2 home anymore for around $100k. The foreclosures I see in the Chicagoland area tend to all be together in the same neighborhoods or towns. And from what I have heard, the same seems true in CA. But when I looked at this CO area, the For Sales and Solds seem to pepper the area in a normal random pattern and foreclosures were mixed in with non-foreclosures.

Susan:
I appreciate your response. I'm a little different than the average "Just Looking", take a look at my profile. I look forward to hearing more from you and viewing your website.

Back to Chris: I thought that was funny!!! Take a look at my appraisal rant for Three Oaks, MI.
http://www.trulia.com/voices/Financing/Are_the_current_low_a…

REALTORS: THIS IS AN INTERVIEW QUESTION!!! PLEASE CHIME IN IF YOU SERVICE THE AREA.
Thanks,
Ruth

Fri May 9 2008, 11:16

When you factor in the re-hab costs and having to buy the home "as-is" in many cases, it is typically much safer to pay a little extra to get a property that will be a good home and better investment than the foreclosure.

But of course, if you have the patience with re-hab and know how to thoroughly evaluate the "as-is" nature of the purchase, then you may be able to get a better deal...but the better deal most always comes with more risk.

So you have the risk reward factor and your tolerance for one or the other.

Thu May 8 2008, 22:29

As you know, Ruthless, I am not in the area you are looking, and our price range is quite high.

For us, the buyers are looking at a few things - Super fixers with super low prices, foreclosures or not; fixers with lower prices, foreclosures or not; foreclosures with upgrades but lower price, and then none foreclosures that are nice, and in great location and regularly priced.

People are looking and buying various properties, and you don't know what will catch their eyes - there was one property on market recently; super fixer, not a foreclosures, but priced quite low. I did not think it'd go (thought should be lower), but it went in just a couple of days.

I guess, for us, buyers are out - actually the mood in my office is very optimistic..... after a bleary winter. .

Sylvia

Thu May 8 2008, 21:57

Foreclosures are very often undervalued properties, priced according to a desire by the owner (most often Fannie Mae or a bank/lender) to sell quickly in order to remove the bad debt off the books. There is a distinct gap between undervalued and at value homes in the current market. The number of foreclosures priced below market also affects prices of non-foreclosures. Its a vicious cycle and can be difficult if you are a Seller. Buyers with no contingencies can get outrageous deals and very often we are seeing multiple offers on bargain priced foreclosures. Call me if you'd like additional help!

Thu May 8 2008, 21:38

Hi, When I work with a Buyer I have them will out a form I developed that helps us determine the needs and wants of their future home. This shopping list includes area of town, bedrooms, bath and condition of the property. IE money available to fix up or move in ready. Then we start the search. I look for homes that have everything the buyer wants first in their price range as determined by a qualified lender. Then we start hunting. When the Buyer finds something they like I do an analysis of the Solds in the area to help the Buyer determine what price they want to offer.

As a specialist in REO's (Real Estate Owned by Banks) I know that a bank will order (at least 3) what is called BPO's (Broker Price Opinion). Three Real Estate agents will take pictures of the property and do an analysis of the solds. A mini unofficial and less expensive Appraisal if you will. This gives the bank a good picture of the value of the house. The bank then has to determine how much to price the home at and usually takes a loss due to declining property values. They are usually competitive with others that have sold. A Home Owner runs into the problem that they have a set Mortgage amount and Realtor costs that are perhaps higher than the current value of he home. With the large number of foreclosures and HUD properties in this market it is hard not to look at foreclosures. A lot of the foreclosures just need a little fix up or appliances and paint and some need everything. It stands to reason if a home owner can't make the Mortgage that they can't afford general maint. In my book everything that meets all the Buyers wish list items and within their price range is competition. As far as being a Seller pricing the property correctly according to the SOLDS in the area evens out the game. I hope this gives you an insight into my opinion on the matter. If I can be of service any further feel free to contact me. Susan

Thu May 8 2008, 21:31

Do those exist? Especially in a declining market area with 1950s, 3/2 starter homes?

Thu May 8 2008, 21:22

I think the average buyer is looking for foreclosures that are in move in condition!!!!

Thu May 8 2008, 21:00