How realistic is it to get a foreclosed property of 6-700 sq. ft. at a bargain, foreclosed rate, and how, if realistic, do I get first in line?

Asked by Ellen Liversidge, Ocean Beach, San Diego, CA Sat Jan 30, 2010

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Dusty Brazil’s answer
Dusty Brazil, Agent, Del Mar, CA
Sat Jan 30, 2010
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I can tell you one thing.. or a few things. You may see a really low price on something but that has nothing to do with the value........ in most cases. 1) You are either looking at stupid short sale listings priced ridiculously low just to get guinnee pig offers, or 2) It's a repo placed 5-10% below market value and everyone will bid up on it to appraisal value.

You will need to make many a' offers in todays market, so don't be too picky if you want something in a certain area. Make sure you are approved AHEAD of time before getting your hopes up or before suckering a Realtor into wasting their gas money and wearing tires out.

Put it this way, to answer your question is simple: You WON'T get a deal.. ontop of another deal, prices are going to be pretty firm these days, and 50% of the time sell for more than asking price, especially below $350K . You need to work with a REALTOR closely and then they can show you the best deals to persue based on your needs and affordability.

Dusty Brazil
Keller Williams Realty
760 207 7245
1 vote
John Juarez, Agent, Fremont, CA
Sun Jan 31, 2010

Ask you question to two or three local Realtors. Pick one of them based on their responses, or whatever other criteria you want to use, and work with that person to find the house you want. This is the secret formula used by most of the successful home buyers.
0 votes
Pam Mccormick, , San Diego County, CA
Sun Jan 31, 2010
Hello Ellen,

You have probably noticed that prices are on the upswing now and one of the reasons is that there is a limited inventory of houses in San Diego. So the ol" supply-and-demand is working which is that the listing prices you see will more than likely be bid up and sell at a higher price. When you make an offer make it count and offer at least the asking price or higher. Don't ask a lot from the seller because he/she will be looking at multiple offers. Don't just concentrate on foreclosure properties because all property values are much lower now.

Good luck in your search.
Pam McCormick
Keller Williams Realty
(858) 354-7335
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Middleton And…, Agent, La Jolla, CA
Sun Jan 31, 2010
What I am telling people right now is that BUYING is the bargain, not necessarily only waiting for REO / Foreclosure properties.
There are many great opportunities out there. Coupled with low interest rates and prices, it makes buying for the long term a bargain. Quite often, some of these foreclosure properties START at great deals, because it is a marketing strategy to build up a lot of interest. In the end, the price comes closer to fair market value due to up bidding and repairs.
The fed will most likely stop buying mortgage bonds in the next few months, and if so rates will go up. Talk to an agent who is willing to search for those opportunities, and not just set up a search that says "foreclosure properties." By not looking at the whole market, you could very well be missing out.

Best of Luck!
Justin DeCesare
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Ellen Hayes, , San Diego County, CA
Sun Jan 31, 2010
Ellen! Many Buyers are still under the illusion that this is a true Buyer's market. The only things that contribute to this being a Buyer's market is that prices are good, even with the bidding up of prices, and the buyer's credit is a good thing, too. The other factors point directly at the Sellers side. If a property is priced well, the norm is that it's sold with many offers. Your agent needs to guide you in what to offer and even then, has a high likelihood of failure, if an all cash offer also comes in with a quick close. I am NOT totally convinced that prices are going to come down this year... but will admit that when the tax credit goes away and the rates rise, that may make it happen. If Obama creates other opportunities, though, prices could start to climb as they have done in many areas.

As far as "getting first in line"... well... NO ONE has a crystal ball... just keep your eyes peeled both with whatever link your agent is providing for you, and on your own........

Good luck! Ellen

LISTEN TO YOUR AGENT, and GIVE UP in thinking that you are going to "get a steal". Whatever you buy now should do you well for the future.
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Joan Wilson, Agent, San Diego, CA
Sun Jan 31, 2010
As you can tell by the answers, it's not likely that you are truly going to get a bargain. We are seeing multiple offers, cash offers, as is offers, way over value offers.

First in line? Bid high and have cash.

Let me know if I can help you in any way!

Joan Wilson (Realtor, SRES, Ecobroker)

California Cool 4 Sale
Prudential California Realty
Direct Phone: 760-757-3468
Fax: 760-946-7894
License # 01341483

It is my Goal to Increase the Success and Profitability of Those I Serve
0 votes
David, , La Jolla, CA
Sat Jan 30, 2010
We write/ offer about 30 contracts per month for REO's and all of our offers are at minimum list price or slightly above...

We are all cash and 2 week escrows and we are lucky to get 2/3 deals per month.. every listing has multiple offers and many are like ours, all cash.

Good news for some is prices will fall another 10% this year.. so if you want to buy, get qualified and be ready when the time comes..

If you are not prepared, dont bother
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