Question Details

Perry Hender…, Real Estate Pro in Austin, TX

Why do you think there is so much interest in buying foreclosures?

Asked by Perry Henderson, Austin, TX Wed Nov 28, 2007

Foreclosure reality check.... Seasoned investors who buy foreclosures know the REO manager at the bank and get "off market" deals. They never have to bid or find a place online to learn what's available.

FOR ALL OTHERS: The only "sellers market" in america is the foreclosure market. Don't expect any deals from a foreclosure as the bidding process brings 20-30 people to bid on almost every deal. A deal that was already priced at market.

It's easier to get a deal by going to a realtor, asking them to find the oldest property on the market and start dropping discounted offers. In addition, you won't have to wait 30-60 days to hear an answer.

Everyone wants a deal. So get one the right way. Work with a realtor in a market you know and grab up discounted property from ready, willing and able sellers who are willing to part with some of thier equity to sell today.

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Answers

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Well, you kind of answered your own question, Perry, he he. But i will back you up on that. Banks are tough to deal with. I was the winning bidder at an auction. The house had serious structural issues and had been trashed, as well as burst pipes. The bank would not accept the winning bid. They are not realiity based. I'll take a motivated seller anyday.
So here's my amateur theory on the interest in foreclosures: pent up demand. I hear anecdotally that buyers who want to reenter the market are putting it off til Spring and/or waiting for market bottom. They mistakenly believe that a foreclosure is a lower price and that a foreclosed home has hit bottom. Safe to buy, since no where to go but up. They are of course mistaken. But I interpret the interest in foreclosures as an early bullish sign. IMHO or perhaps wishful thinking. :)
0 votes Thank Flag Link Wed Nov 28, 2007
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