Doe you have any listings of Foreclosures?

Asked by J R Martinez, Albuquerque, NM Wed Feb 13, 2008

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Dr Cheng, , Centrual New Jersey
Wed Feb 13, 2008
There are very few foreclosures in this country, and it often does not worth the effort to just deal with it.

So, who are the people deal with it, there are some companies they deal with it or few realtors who are in the business and knowledge and they make the commission. That is to say, it is much more cost effective for them to deal with it.

Think about it. Realtors are just "flippers" technically, and every time they "flip a home" and make 6% profit. So, most foreclosures do not have too much profit, and realtors got them and sell them and make 6% of the profit. If you are not realtor, and you try to get them and let realtor to sell it for you. It is like flip TWICE, and you need to have at least 12% margin. I suspect you have that market since most people who end up foreclosed the house do not have that margin.

Besides, foreclosure properties are lack of Internet info. So, you may do much better by "flipping" nice townhouse communities like Westgate at Edison where you see a unit 92 Westgate just sold for $369k, whereas there are units you may get it for 10% less.…

And you know immediately the listing agent of the lowest one is "price chopper", very experience to scare the seller to under list the price. So, if you made a low offer thru listing agent who may go scare the seller more to accept your offer, especially, if the seller is rush to move up to buy bigger house. It won't work if you go thru other realtor because if you go thru the listing agent, the listing agent wanted TWO commission, so will be more than eagarly to see the deal thru. Besides, if your low offer has some gam, the listing agent may wind up give you some % back to make the deal, but that gap can not be more than 6%, the commission. So, you may try 6% lower than the listing price to get it, and since it already 10% lower the market price, you will have 16% profit margin, better than most foreclosure properties.

As soon as yours closed at 16% lower than 92 Westgate Dr, you can put back to market for sale at $389,900 and knowing the market price is $369k, as long as you got a 20% down buyer, he would be able to get the mortgage, and you make the profit.
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