On TRULIA I saw two foreclosure homes. What do I do to go take a look at them? Is there a contact person representing each foreclosure?

Asked by Janet, Great Hills, Austin, TX Tue Dec 7, 2010

One is priced WAY above what I can spend. However, there is a note saying that lower offers are accepted. If I make an offer WAY below the asking price, would it get consideration?

Are there any negative stigmas to buying a foreclosure home?

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Betina Foreman’s answer
Betina Forem…, Agent, Austin, TX
Tue Dec 28, 2010
Dear Janet,
While price is always negoitable, there are limits to reasonable offers. If the house is priced at current market value, then the offer should be fairly close to that. Typically offers of $50-$100K less than asking (for homes priced $500K or less are not accepted in my market. In fact you could be offending the seller and sellers agent (its their job to use recent comps to establish the listing price).

You may contact the listing agent that represents the bank, however having a Buyers Agent to represent you is a good idea. Having a Buyers Agent costs you nothing as the Sellers pay the Realtors commissions in Texas. Your Buyers agent can give you recent comparable home sales information. This will help you be able to make a reasonable offer that will be accepted by the bank that owns the property.

The only real stigma in buying a foreclosure is it may be stripped down. Often I have seen foreclosure homes missing: light fixtures, electrical wiring, no HVAC units, no appliances, no plumbing fixtures etc.
1 vote
Sally Grenier, Agent, Boulder, CO
Tue Dec 7, 2010
BEST ANSWER
As far as buying a foreclosure, a bank will consider any offer. Per my previous response, I would have an agent help you in determining a good offer. (any seller, even a bank owned property wants to get fair market value). Just because it's a foreclosure doesn't mean you're going to get it for a ridiculously discounted price. Chances are, it's already priced pretty low. A really "lowball offer" is probably just a waste of everyone's time. So have your agent get an idea of fair market value first.

As far as stigma goes, I don't see it as a stigma at all. You would be doing a great thing for the neighborhood by buying a foreclosed property and fixing it up (if it's in bad shape). I'm sure the neighbors would LOVE to see this home sold.

My current home was a foreclosure and our neighbors welcomed us with open arms because the house sat vacant for years and the lawn was a terrible eyesore and brought property values down. Now, you'd never know it was a foreclosure at one point.
Web Reference:  http://www.sallygrenier.com
0 votes
Torquil Cree…, Agent, Austin, TX
Sat Apr 16, 2011
Hi Janet--

Any Licensed Realtor can show you ALL homes available that are Listed For SALE. It doesn't matter who is selling the property or if it's a foreclosure. Find a Real Estate Agent that you like & trust and they can show you the best deals around, negotiate on your behalf and make sure your needs are best represented. Buyer's agent services are free to buyer.

I am a Realtor that focuses on finding the BEST value and quality on homes for my Buyers.
Often, these days, Foreclosures are NOT the BEST deal.

Your next step is to find a Realtor to represent you to make sure all the details of finding & buying a home are taken care of. This is a FREE service to you--the buyer---so you have nothing to lose. If you try to buy without a Realtor helping you many things can go wrong & you will not likely get the best deal.

Your Realtor will also be able to tell you what homes are selling for in the neighborhoods you are considering--so you can get a better idea of what a realistic offer is. It depends on many factors as to if a low offer is considered. They will help you sift through all the details so you make the best choices & offers.

I'm here for you if you have any questions.
All the Best!

Torquil Creevy
512-227-1577
The Samford Group
0 votes
Dixie Haynes, Agent, Rockport, TX
Fri Dec 31, 2010
Janet,

The contact person listed on the foreclosure for sale usually represents the Seller. I recommend that you obtain buyers representation with a Realtor® that has the expertise required in assisting buyers in locating foreclosures and/or short sale opportunities. Buyer’s representation is at no cost to the buyer, in that; this fee is normally incurred by the Seller as part of their listing fee.

Property foreclosures are on the rise across the nation, presenting significant financial opportunities for real estate investors, first time home buyers, and those looking to move up within the real estate market.

A foreclosed property refers to a piece of land or real estate that has been repossessed by the Mortgage Company or financial lender. During the foreclosure process, the financial institution searches for interested buyers. In the event that an interested buyer does not wish to invest in the property during the initial stages of property foreclosure, the property will go to auction where it will be sold to the highest bidder.

So, how can you benefit from the current foreclosure market?

Foreclosed properties are often offered at prices significantly lower than fair market value, offering strong financial opportunities to individuals and investors.

Investors can purchase foreclosed properties to resell or rent for an immediate income. First time home buyers can often purchase a larger or nicer property. And individuals who are looking to move up within the real estate market can often find a larger property at competitive prices, allowing them to purchase a larger property than they originally anticipated or to buy their dream property at a reduced price.

Alternatively, to avoid foreclosure many homeowner will attempt to sell their property via a Short Sale. A short sale occurs when a property is sold at a value below what is currently owed on the piece of real estate. When a property is offered for sale below the current fair market value, it is considered to be a solid investment opportunity as well.

Individuals are often attracted to short sales as they can purchase their dream property at a substantially reduced price, or they can buy more homes for their money. In either instance, short sales present strong financial opportunities worth consideration.

I hope this help!

Dixie Fedler, Realtor®
Prudential Texas Realty
0 votes
Janet Quenon…, , San Antonio, TX
Tue Dec 21, 2010
To see the property you can try to individually contact the listing agent hoping they will open up the property however having a buyers agent is someonededicated and working specifically for you. REOs try to get fair market value and the days on market, any price reduction are indications on your offer. There are several additional forms with REOs. I've worked several for buyers most recently in Vista Oaks, my buyer got for a great price with closing cost paid. Sweet! There are several assessment companies managing the foreclosures and they each do it differently. I would be happy to talk with your further as I am currently looking for myself in the north austin area.

Janet Holt, GRI
Greg Weber Realtors, Inc.
512-567-2384
janetQh@austin.rr.com
0 votes
Phillip Baird, Agent, Austin, TX
Tue Dec 7, 2010
Hello Janet,
I already answered your other question so I don't want to seem redundant. But, please contact me and I can help you in the buying process.
Thanks,
Phillip

Phillip Baird
Realtor
Keller Williams Realty
512-289-5738
fax: 512-623-6032
phillipdbaird@gmail.com
0 votes
Eric Blossman, , Austin, TX
Tue Dec 7, 2010
Hello Janet,

Whether or not a low offer is accepted will have a lot to do with who currently owns the mortgage, and how long the property has been listed. You would have to go into much greater detail to get accurate information on whether or not your offer will be considered. A good realtor can be invaluable in this negotiation. If you need a referral in the Austin area, let me know. I do a lot of REO financing and have a good number of qualified realtors that I work with that I could refer you to.

Just let me know if I can assist you in any way.
0 votes
Linda Lorenzo, Agent, McKinney, TX
Tue Dec 7, 2010
As mentioned you need a local Realtor to assist you and they can answer lots of your questions and guide you through the process. Just know that with a foreclosure you need to be doubly sure you have a thorough inspection done as there are no guaranties as to condition of anything. When a house sits for a long time there can be many problems, so just be carful of what you make an offer on. Good luck.
0 votes
David Chiles, Other Pro, Los Angeles, CA
Tue Dec 7, 2010
Thank you for your questions about purchasing a foreclosure home.

Who is the contact person?

To look at a particular home you can contact the listing agent and schedule a viewing, however, I suggest using a good local buyers agent to guide you through the process.

Can I make a Low offer?

Making an offer way below the asking price is usually a waste of time and effort. Understand that when you decide to purchase a foreclosure property you will probably put in offers on a couple of homes before you find the right one.

Is there a Stigma?

Given that there are so many foreclosure properties on the market the stigma of purchasing one has all but evaporated.
0 votes
John Crowe, Agent, Austin, TX
Tue Dec 7, 2010
Sally makes some great points, especially finding an agent to guide you through the process.

Concerning the value, banks base pricing of something called a BPO - broker price opinion. They hire a local agent to provide a value based on comparable sales (factoring in condition of the property). My experience working with banks, they will accept about 90% of the BPO. If the house sits for a long time, the number will be lower.
0 votes
Sally Grenier, Agent, Boulder, CO
Tue Dec 7, 2010
I would suggest you find a Realtor to help you. Ask around - friends, family, co-workers -- and see if anyone recommends a good agent. If not, I can find one for you through my network of Coldwell Banker agents. In most states, a buyer's agent get's paid by the Seller & Listing Brokerage firm, so it won't cost you anything. A Realtor will have access to the local MLS (multiple listing service) and will be able to show you these properties. They will also help you in writing the offer, dealing with any inspection issues, appraisal issues, title issues, financiing issues, etc. If you need assistance, I'd be happy to help you find someone in Austin.

Sally Grenier
sally.grenier@coloradohomes.com
Web Reference:  http://www.sallygrenier.com
0 votes
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