Foreclosure in Boynton Beach>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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Although, as Mary Anne says, expanding your search to FSBOs and foreclosures expands your choices, I have found that when my buyers can't find a suitable home among the hundreds if not thousands of listed homes to choose from, they usually don't find anything among the FSBOs and foreclosures and building from scratch options. I would suggest you take a fine pencil to your "needs" in a new home and try to figure out what is important to you. In other words, if you are looking for waterfront, than don't look for waterfront, but it can't be a split level, cape, or 3 bedroom house, if you understand what I am saying.
0 votes Thank Flag Link Tue Oct 28, 2008
With Pre-foreclosures the most banks will not finance unless it is safe, sanitary and secured. So if the seller doesn't have the money to fix a roof or shock a pool (which they all need) then you have to do it. Why would you put money in to a home you dn't own? They can be very frustrating and hard to finance. Not all, but most.

FSBO, hire an attorney or realtor to represent you because nobody is looking out for your interest and the buyer probably is overpriced and will not protect you. I wouldn't draw up a legal document without representation.
0 votes Thank Flag Link Tue Oct 28, 2008
One drawback of foreclosures is that you will not be able to finance it. The county will require full payment by 5pm. You should look at pre-foreclosures. In this situation you're able to finance the purchase. Working with FSBOs will require a lot more work on the buyers side.
0 votes Thank Flag Link Mon Jun 11, 2007
Herman Chang, Real Estate Pro in Palm Beach Gardens, FL
The benefit of expanding your home search to include FSBO's and foreclosures is that it increases your choices. It can be more work because the information about these properties is rarely all in one place, so you don't know when you walk through the door if this is even the type of house you're looking for. When you're working with an agent like me, it is my job to find you the house that best meets your needs. I do that by asking you what you require in the home you buy, and then listening to your answers. I weed through all of the properties that are currently on the market for you. I may take you to some homes to see how you respond to them. The better I get to know you, the faster your home buying process will be!
0 votes Thank Flag Link Mon Apr 23, 2007
When searching for a home, you should always expand your search to include all available properties. Fortunately with today's technology, Realtors have access to FSBO's and Foreclosures. Most sellers, even if not listed, are willing to work with a realtor if they can secure a qualified buyer. It takes an excellent negotiator and facilitator to work with unrepresented sellers.
0 votes Thank Flag Link Mon Apr 23, 2007
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