Foreclosure in 08094>Question Details

Brenda, Home Buyer in 19701

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

Asked by Brenda, 19701 Sat May 9, 2009

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Chances are that if a home is a foreclosure then it will be listed for sale by a real estate agent hired to represent the bank and market the property. Unless you are attempting to buy the home at auction or trustees's sale. When buying a foreclosure listed by a Realtor, the process is pretty much the same as a regular sale, with a few exceptions. The bank is the seller. Communication with the will probably take a little longer. You may be competing with other buyers who are going after the "great deal". Also, the sale is very likely to be "as-is, where-is" meaning the bank offers no warranty, disclosures or guarantees on condition. What you see is what you get. A thourough home inspection by a qualified inspector is very important. A For Sale By Owner is likley to be much different than a sale involving agents. Neither the buyer or seller will have professional representation, meaning a lot of liability. Also, you will be responsible for negotiating directly with the seller, researching all neighborhood info, comps, etc. etc. A local real estate agent is a very valuable asset to assist you. Many agents can still represent you on a FSBO, but their compensation has to be negotiated. Sometimes the seller will even be willing to pay your agent for bringing you to the property. Depending on your state's laws, sometimes a title company can facilitate the sale. They can handle all of the neccessary paperwork for a fee. Sometimes you will need a real estate attorney. Consult a local real estate professional or a title company in your area to have them answer these questions for you. But keep in mind, a Realtor is a very valuable asset to help guide you through the process. Good luck!
1 vote Thank Flag Link Sat May 9, 2009

There are many differences, but most notably there is no real agent commissions involved.

Love and Peace,
Web Reference:
0 votes Thank Flag Link Sat May 9, 2009
Biggest difference is the bank is "as is" transaction. Meaning you are responsible for repairs, certs... everything.

But there are ways around that too.

Larry Sarlo
Weichert Realtors
Web Reference:
0 votes Thank Flag Link Sat May 9, 2009
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