Foreclosure in Turlock>Question Details

J.P., Home Buyer in Tampa, FL

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

Asked by J.P., Tampa, FL Mon Apr 23, 2007

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

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I do not see a benefit to buyer or seller in purchasing a FSBO. True, a seller will save in commission - but the property is not exposed to qualified buyers in general. The Internet has helped them to s certain extent, at the same time many of the posted sites that they use are not updated with 24 hour feeds, and do not have a full comparable choice in which a buyer is looking for. Typically a sincere buyer is working with REALTORS (members of the Board, the MLS, etc.) and can show the buyers many homes in the categories they are looking. The disclosure law and buyers rights are typically overlooked in a FSBO. It does not take a rocket scientist to understand the 'basics' of a transaction - but it does take a professional that abides by a code of ethics, understands fiduciary duty to bring it to fruition. I feel, and have always felt since my career in this industry began 30+ years ago - it is of most importance to use a REALTOR for the transaction, along with a lender that does not represent the buyer as the real estate agent. There are many reasons this path should not cross - and as the 'subprime lending failure' unfolds there will be many examples of the failure of this situation. Each party in the transaction is there for a reason. At this writing - the public is not aware that fiduciary duty is not within the realm of a lenders responsibility. I recently witnessed a very sad example of a short sale where the loan officer also acted as the real estate agent AND the appraiser! Who's best interest was that transaction for? In pursuing the short sale market along with foreclosures, it is most important to work with a professional. If the home is in the REO category (foreclosure) professional guidance is of extreme importance. Buying on the courthouse steps? KNOW what you are doing... there are situations where there are liens that may be hidden on those properties. In general - please seek the guidance of a full time professional REALTOR!
2 votes Thank Flag Link Mon Apr 23, 2007
A foreclosure is usually already listed by an agent. The banks and FSBOs need Realtors now, more than ever. Marketing and maximum exposure really make a difference in a highly competitive market like ours. Realtors affiliated with national firms leverage the multi-million dollar Internet campaigns to expose the property to the largest audience-- first time homebuyers, move-up sellers/buyers, and my favorite, smart Investors. Now is a great time to buy-in, fix-up, and hold-on for maximum return on the purchase--cash-flow AND appreciation. As T. Harv Ecker says, "Don't wait to buy real estate. Buy real estate, and wait."
0 votes Thank Flag Link Tue Jan 15, 2008
To answer your question. No. The process is the same.

How you get to the FSBO or foreclosure is a different matter. Do you have access to all the FSBO's and foreclosures?

If not... contact a Realtor and the world is your oyster.

A good Realtor will direct you to the best deals.
0 votes Thank Flag Link Tue Sep 18, 2007
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