As many of you already know, a foreclosure starts with late payments, then the bank repossesses the home, and the property is offered for sale, usually in an auction at the county courthouse.
Typically, though, the bank that owns the property will list it for sale through a local brokerage.
As Katie and I discuss in this week’s Let’s Get Real With Real Estate, though foreclosures are certainly a bad thing for the previous owners that didn’t make their house payments, for buyers, a foreclosure can represent an excellent opportunity.
Typically, foreclosed properties are less expensive, and since they’re bank owned, there’s no emotion on the part of the seller – the bank just wants to recoup as much money as they can. That gives you a good deal of bargaining power because many banks would prefer to take a lower offer now rather than wait for a potentially higher offer at some point down the road.
That being said, there is a common misconception that a low-ball offer will be accepted. As Katie pointed out in the video, if a house is listed for $100,000, offering $25,000 will get you nowhere. While the bank wants to offload the property, they certainly want to minimize their loss as well.
We touch on all kinds of other topics in the video, including the differences between a foreclosure, a short sale, and properties listed by a relocation company, as well as some tips for making the most of your search for a foreclosed home.
Give the complete video a look, see what benefits foreclosed properties have for you, and if you have questions about how to buy a foreclosed home, don’t hesitate to call us at Wind River Realty at 307-856-3999!
Further Reading:
- How the Government Shutdown is Affecting Real Estate
- Ask O: How Do I Stage My Home?
- Getting a Mortgage Doesn’t Have to Be Scary