Where does the foreclosure price come from? I am new to this but want to purchase. Can I actually buy houses for the listed price?

Asked by Cossettehaner, Melbourne, FL Sun Dec 15, 2013

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7
Jason Lande, Agent, Melbourne, FL
Sun Jan 5, 2014
Typically the price is an appraisal price that the bank sends someone who is qualified to go and do. Be careful of the homes that might have back due HOA fees and other liens. Sometimes the bank doesn't take care of those


If you have any question please feel free to call me or email me
Thanks
Jason Lande
Realtor
cell:321-356-6419
email:jasonmlande@gmail.com
website: http://jlande.mybrevardfloridahomes.com
0 votes
ryansmlonsda…, , Franklin, MA
Fri Jan 3, 2014
yes if the home is in bad shape I think the bank will rather get some fair price thane sitting with the home, not producing but costing them money.
0 votes
Antonio Vega…, Agent, Saint Cloud, FL
Mon Dec 16, 2013
If you are looking at:

"Caledonia Pl Melbourne, FL 32940
4 bed, 2 full bath 1,902 sqft Single-Family Home
Foreclosure / Lis Pendens
$16000 "

here are some clues....
1. There is no house number in front of the address - that means you are not looking at a listing for sale, it is only a public record.
2. Foreclosure / LisPendens - if its a LisPendens it is not a foreclosure yet, it is in process, so it cannot be for sale.
3. Do homes in 32940 with 4/2 and 1902 feet usually sell for 16,000 , I doubt it. They likely sell for 160,000 ; now, is it possible the person entering the information left out a 0?

Foreclosure prices are set by the selling/owner bank based on a recent appraisal and recommendations from local agents. Then every 30 days or so the price gets reduced a little until someone buys it. Yes, sometimes you can buy a home for the listed price, when no one else has made an offer that competes with yours....but frequently there are many offers and the highest one gets the house. Exceptions - when the price shown is not the correct listing price (publishing errors).

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Tony Vega
Antonelli Realty
0 votes
Thank You You very kind to answer.
Flag Fri Jan 3, 2014
Joan Willis, Agent, Melbourne, FL
Mon Dec 16, 2013
The forclosure price comes from the bank, they typically send an appraiser to look at the property after they have asked a realtor to to a broker price opinion. They determine their price from both (or multiple) reports, then they place it on the market usually at a price close to what others in the neighborhood are selling for. The longer it is on the market the more willing they are to negotiate the price.
Feel free to contact me at anytime if you need further assistance.
0 votes
Lawrence Fle…, Agent, Melbourne, FL
Mon Dec 16, 2013
Here are a couple short videos that will help you understand distressed home sales.
http://budurl.com/foreclosure321 http://budurl.com/shortsale321

Hope this helps,
Larry Fleckinger
HouseMax Pro Realty
321-252-9767
0 votes
Richard Zacke, Agent, Melbourne, FL
Sun Dec 15, 2013
Great Question!,

I thought I would share a link with you that will provide a lot of information about foreclosures from the source... the bank!

http://foreclosures.bankofamerica.com/how_to_buy_a_foreclosed_home

Foreclosures typically start out with a bidding restriction and as they stay on the market longer more people can bid, such as investors. You will be able to purchase a foreclosure at the listed price if you are not in a bidding war. If you see the home has been on the market for a long period of time then your chances of getting it at lost price or below are very good.

V/r

Richard Zacke, Realtor
Direct: 321-243-2734
Email: richard.zacke@gmail.com
http://relocatemelbourne.com/forum
0 votes
Shirley Weems, Agent, Melbourne, FL
Sun Dec 15, 2013
What a great question. You would not believe how many agents do not even know this answer. Every an asset is awarded back to a lender the first thing done after occupancy verification is value. There are minimally two reports completed by two individuals. One the list agent and one either another agent or an actual appraiser. This is why when you see a price you will find the banks are rarely willing to come down off that price much. Banks also do price reductions often so that is another reason when you see a price, the accepted offer will be fairly close. Hope this helps. Feel free to contact me with any additional questions. Happy house hunting!
0 votes
I am still confused. This listing for instance say 16000 but how much will it sell for?
Caledonia Pl Melbourne, FL 32940
4 bed, 2 full bath 1,902 sqft Single-Family Home
Foreclosure / Lis Pendens
$16000
Flag Sun Dec 15, 2013
WHAT???? Every an asset is awarded back to a lender the first thing done after occupancy verification is value
Flag Sun Dec 15, 2013
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