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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Answers

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When looking at a foreclosure, or a property described as foreclosure - do you homework. Advertizing a home as a foreclosure home has become more common as sellers compete for buyers.

You may be surprised that that is all it is - advertizing, most are pre-forclosure, or almost in pre-forclosure, depending on who you talk to. Ask the right questions beofre you invest tihe time, and make sure that it is indeed a foreclosure home, not just advertizing.

If it is a foreclosure home, make sure that you are dealing with the correct person.
0 votes Thank Flag Link Wed Sep 12, 2007
Hi J.P., Foreclosures have to be considered on a case-by-case basis...some are great deals and others aren't. In our current market, many Foreclosures are cases where Owners are "upside down" on their mortgage, so to speak...they purchased at peak prices and have since refinanced, etc. and now owe more than the home's CURRENT market value....obviously, those aren't the Foreclosures that you would be interested in. Of course, the benefit of of a Foreclosure purchase is that you could find one that's a great deal for your $$. The specific buying process for Foreclosures differs from one home to the next...although the Foreclosure process itself is similar for all homes, the buying process can differ drastically from one home to the next depending on where they are in the Foreclosure or pre-Foreclosure process, depending on what their Lender is requiring of prospective Buyers...depending on what terms the Owners have agreed to with the Lender, etc. Those are just some of the variables. Like I said before, they have to be considered on a case-by-case basis...there's no "blanket answer" that covers all Foreclosures...purchasing one can be (and usually is) a complicated process that should be embarked upon carefully if you should decide to go this route....same thing with FSBOs. A thorough, detailed answer would actually require much more than a few words of response online here.
0 votes Thank Flag Link Sat May 26, 2007
Many FISBO's will cooperate with realtors and the buyer can often get a better price.
0 votes Thank Flag Link Mon Apr 23, 2007
Buying a foreclosure is risky. You cannot do inspections, appraisals and in most cases are stuck with someone else’s problems that you did not know of. FSBO’s usually eventually are sold by realtors. But have a realtor represent you anyway. Most FSBOs will be happy to pay your realtor their commission. Remember though, that a FSBO is trying to put the commission in their pocket, while a home’s appraisal price includes the real estate commission!
0 votes Thank Flag Link Mon Apr 23, 2007
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