Foreclosure in San Marcos>Question Details

Halley S., Home Buyer in New York, NY

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

Asked by Halley S., New York, NY Mon Apr 23, 2007

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

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there is never a drawback to expanding your search as then you will see the full scope of the market. So look, it cannot hurt. However, FSBO's can be hard to handle on your own. there are disclosures, reports and inspections you should ask for. Your realtor knows the process and will not skip any of the steps. Often, however a FSBO will allow you to have a realtor. Ask the question and get representation. Buying a home is an important investment and you want to make sure you are satisfied. Banks can offer some great savings when buying a foreclosure but keep in mind the home is usually sold in an AS IS condition and there is often need for repairs. Usual and customary expectation is to replace flooring and paint interior. Hope this helps.
0 votes Thank Flag Link Sun Feb 21, 2010
Hi Halley,
I have purchased one FSBO and one Short sale in my lifetime and here is what I have concluded. Foreclosures are a great way to get a good price on a home, however alot of the time the homes are torn apart by the previous owners because they are hurt and understandably so. Short sales are also a great way to aquire a home, but you have to prepare to wait for 6 months to a year depending on how many lenders they have and if they are approved or not. The benefit of buying a short sale however is that most of the time they are in better condition than a bank owned due to the owner is usually still living there for a duration of the time. FSBO is also a good option, but unless the owner owns the home with a large amount of equity be prepare to pay top dollar for the home even in this market. Also, be sure to do your research when dealing with a FSBO because as said before there is a lack of knowledge that you would get from realtor representation. I hope this helps, I am also an agent and would be happy to help any time if needed. 760-533-5347 Trisha
0 votes Thank Flag Link Fri Feb 12, 2010
The single biggest drawback regarding searches for FSBO and foreclosure can be the lack of representation and guidance the home receives. Many time this can lead to improper pricing of the property and lack of critical disclosures. The buying process can be very dangerous with both FSBO and foreclosures if you are missing representation that will prevent you from making huge mistakes.
0 votes Thank Flag Link Mon Apr 23, 2007
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