Home Buying in Ypsilanti>Question Details

Heidi, Home Buyer in Ypsilanti, MI

Advice on foreclosures and how to break in to actually buying one?

Asked by Heidi, Ypsilanti, MI Fri Feb 6, 2009

Hello there
I have given offers on three homes (at various times) in my recent neighborhood, in order to find a larger house for my daughter. The first house, the real estate agent woudn't even submit my bid of 55,000 and then a year later the house sold for 65,000. The second house, my bid and earnst check was driven to the real estate office by my realtor, when my realtor got there, he was informed that the house already had a bid on it that was accepted. 6 months later that same house went on the market again...we once again put a bid on it, and was declined. The house sold three months later at the bid we put on it. The third house is at an asking price for 74,000 and has been on the market for 3 years, we put a bid of 55,000 counter offer was 73,000 so we said forget it, even our realtor was irritated by this counter offer.
There is a fourth house headed for foreclosure(found on realty trac) in this same neighborhood, any advice on how to obtain this house?
Thanks!

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Answers

5
Thank you all for your answers!
if response to some of your questions..
Yes, we are working with a buyer's agent different then the one we first started with who refused to take our bid to the bank.

In regards to the second house, our Realtor did call the office and was told that there were no offers, that is why we put in ours. The office that had this particular house, obviously did not communcate with each other. The same office also had the first house listed with it.

In regards to the third house, it is a REO, actually a Freddie Mac house at this point, it started at the 130,000's and we have been watching it drop to it's current price, which it has been at for the past 6 months. After 3 years of sitting, it needs quite a bit of work.

As for the fourth house, it has been vacant for almost 6 months now. It is also a REO and we (meaning our realtor) have been trying to contact the bank. In order to see if we can purchase it.

The first two houses have been bought and turned into section 8 rental properties. I know this because it is my neighborhood and the person that bought the first two houses, was having an open house in our area and told us.

This has been a very frustrating experience, going on almost two years, and does not bode well with how the real estate business works at the moment.

Thanks for all the advice and support! Wish us luck that something breaks through!
0 votes Thank Flag Link Sun Feb 8, 2009
Heidi,

The three agents already answering your question all have good reputations and experience in this type transactions. I would agree, working with a buyer's agent (one representing your best interests) might get better results. It is not unusual for banks to make poor decisions causing the value of homes to drop thousands or in some cases tens of thousands of dollars.

My personal opinion is that most buyers do not get the best deal on a property that has come back on the market as an REO (bank owned). You may be better off looking at short sales because they usually require less work to meet code. There will still be a several month negotiating period.
Web Reference: http://mi-living.com
0 votes Thank Flag Link Sat Feb 7, 2009
Was the third house on the market at the same price for 3 years or had it recently been reduced to that price? How far off is the asking price from market value?

In the case of the fourth house, you can ask your Realtor to contact the owners and try to do a short sale for them with you. It really depends on how far along it is in the short sale process.
Web Reference: http://miOaklandCounty.com
0 votes Thank Flag Link Fri Feb 6, 2009
Maureen Fran…, Real Estate Pro in Birmingham, MI
MVP'08
Contact
Heidi, not knowing more details about your situation and each individual situation is difficult. I would suggest your Realtor call FIRST to see if any offers are on the table.

Because it takes sooooooooo long for banks to sign a purchase agreement the listing agent can have offers and because it is not in the MLS as contingent you would not know.

We are seeing multiple offers come in on forclosure's here. Some agents will submit them all and let the highest and best offer win. Other Realtors will not do it. Unfortunately since we are selling so many short sales and forclosure's some Realtors don't know what they are doing.

Not saying this about yours, but some listing agents.

Perhaps you would like to read my blog on Short Sales.
0 votes Thank Flag Link Fri Feb 6, 2009
Heidi,

Are you planning to continue to work with this same agent? Do you have a buyer's agency in-place with them?

Derek Bauer, Associate Broker / Realtor
Real Estate One
Web Reference: http://www.DoorToDreams.com
0 votes Thank Flag Link Fri Feb 6, 2009
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