5 Tips for Buying a Foreclosure
5 Tips For Buying A Foreclosure
Buying a foreclosure is the latest rave. We get calls into our Louisville real estate office daily from Buyers wanting to take advantage of all the great foreclosures that have hit the Louisville real estate market. Buying a foreclosure is not for everyone. Lenders want to move their foreclosure inventory quickly so they turn to real estate agents to list the properties. We in turn list them on the MLS and market them to any qualified Buyers. Investors gobble up most of them but there are some savvy Buyers that make offers and win. If you are not properly educated, it can be a problem-filled process to get to the closing table. Here are 5 tips to help you successfully buy a foreclosure.
1. Use a Buyer’s Agent that is an expert in foreclosures. Don’t ever use the listing agent that represents the bank. Most Buyers think that they will get a better deal if they use the listing agent. This mistake can only cost you money, as the listing agent wants to get top dollar for their lender. Dual agency is a touchy subject and I personally do not understand how the listing agent can truly make sure you get the best deal while also making sure their lender gets the best price. The Miles & Smith Real Estate Group sell several foreclosures each year. We also guide our Buyers on the rehab process. We assist with determining value once the property is fixed up and what necessities the property should have to reach that value potential.
2. Know your financing options: All foreclosed homes are going to require a pre-approval letter submitted with any offers. They will also not accept any contingencies in the offer. Most foreclosure homes will...
