You have heard there are some good deals to be had buying foreclosed homes but how does buying a foreclosed home work?
Generally buying a foreclosed home are either through a real estate agent or through a public auction. In Lee County Florida. The Lee County Clerk of the Court auctions these foreclosures online.
How does buying a foreclosed home work: Buying thru a Real Estate Agent.
There are two schools of thought on this. Some say go directly to the banks listing agent. In the beginning of the foreclosure crisis was a bit like the wild west, Since then, the banks have realized that a small percentage of their listing agents were not exposing the home to the market fully. There has since been protocols introduced to the industry at ensure this does not happen. If the bank mandates that the home be listed for a certain number of days and the bids uploaded to a third party, then what advantage does it offer you to go directly to the banks agent? Think about this, you have the bank, the asset manager, the banks title company and the bank’s agent all working the same supply chain. Would you not want someone working for YOU?
We (Jeff & Cristina Tumbarello) have sold hundreds of bank owned homes (As a brokers we have sold over 300, we have also bought just under a hundred personally) and have developed a checklist to ensure a smooth transaction. PS, we also do not charge our buyers transaction fees.
One thing to point out on buying a foreclosed home.
A bank generally conveys title by a special warranty deed not a general warranty deed. You need to understand the difference.
There is a lot less to choose from when buying a foreclosed home.
As one of the founders of the SWFL REIA ( South West Florida Real Estate Investment Assoc), I prepare and release a monthly statistical report that is very useful when trying to buy a foreclosed home. Here is a screenshot from the July 2017 Lee County Foreclosure Report.
A longer view of the foreclosure filings in Lee County
A view from the peak of the market for Lee County Florida foreclosure filings.
The “new normal” as the excess of the last cycle is disposed of.
There is just a lot less foreclosures to buy. If you find one you like. I would take action.
Buying a foreclosed home: A tip for you.
We find that the foreclosures are trading at similar prices to not bank owned properties. These home are often in better shape and convey with a general warranty deed.
Buying a foreclosed home: At the auction.
We have bought at the auction and you can get some great deals there. It is a space for experienced and savvy investors. You are responsible for any and all title defects (to include if the foreclosure was not done properly). In many cases you also buy the property sight unseen.
Steelbridge Realty LLC is a Licensed Real Estate Brokerage that utilizes cutting edge marketing techniques and data driven Real Estate solutions in today’s ever changing environment. Our group of professionals have decades of experience and have navigated through many business cycles. Our diverse background gives us the tools to guide people towards successful decisions.
During the beginning of the housing downturn Steelbridge Realty LLC was the Brokerage arm of several private equity entities. We assisted them with asset modeling and market metrics. Many prominent local commercial projects were included in this scope of transactions.
Need help buying a foreclosed home?
Please call 239 694 3300 or use the fore below:
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Source: http://northfortmyersonline.com/2017/08/20/buying-a-foreclosed-home/
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