Virginia Beach Real Estate: 3 Tips For Buying Foreclosed Homes

by: Dave.Macklin on Jul 01, 2008 @ 10:31 am 1 comment »

Banks are not in the business of owning Virginia Beach real estate and are motivated sellers. Often, you can get a decent price for a foreclosed property, but here is what you need to know before you shop. These tips will save you time, money and lots of headaches!

According to RealtyTrac, lenders repossessed 28 percent more homes in May than April 2008 and 158 percent more than May 2007.

Although banks don't want to be in the real estate business and will sometimes accept ridiculously low prices to get rid of their inventory of foreclosed homes, buying such properties has drawbacks.

foreclosure Here's what you need to know.

1. Search the Internet

The Internet can help you locate foreclosed homes. You can search national websites, such as Foreclosures.com, ForeclosureListings.com, ForeclosureNet.net or RealtyTrac.com. These sites have Free Trial periods, but then require a subscription. Or, you can search locally at no cost and even sign up to have a list of foreclosed properties emailed to you as they come on the market.

2. Use a Realtor

Getting a lender to deal with you directly is like pulling teeth (lenders typically deal only with pros) or at auction (you may get caught up in the excitement of the moment and bid more than you should).

Work with a Realtor who knows the ins and outs of working with the banks. The majority of the time the banks use Realtors to sell their homes and are used to working with them. Once you've identified which properties are foreclosed REO (Real Estate Owned or bank owned), you'll know those are the ones for which less than stellar offer is more likely to be accepted. You'll get the best deal with houses that have been on the market for over 90 days.

3. Keep an Eye on Repair Costs

Bank-owned houses typically need a lot of work. People facing foreclosure usually have other things on their minds and maintenance is not a top priority. Many take appliances and fixtures with them when they leave and often take other frustrations out on the house....meaning causing damage for damage sake.

Never buy a foreclosed property without an inspection, and be sure to factor repair and remodeling work into your offering price. It is a good idea to present your repair estimates to the bank with your offer, so the bank understands where you are coming from on your price.

We have helped numerous families buy foreclosed properties, negotiating excellent deals with the banks. But foreclosures are not for everyone. You have to be prepared for the sweat equity that will be involved. If you think buying a foreclosed house is right for you or you at least want to explore the possibility, contact us at866-222-0158 #550or Info@ButlerTeamHomes.com. We are glad to help!