I have shown a ton of them. I have written offers with perspective buyers on a few of them. Allow me to share, the foreclosure purchase takes a tenacious spirit. Here’s why:
1. No Disclosures – they are not required on foreclosure sales. Once upon a time, we sold houses without disclosures (back when we all worked for the sellers) and the absence of them now bothers me.
2. The offer – How much time do you have? Exhibit A – Showed one on 1/24, wrote offer week later, sat around in back up position for weeks, saw it back on MLS (called the listing agent and said what the heck?), rewrote the entire offer with updated personal docs, sat around another week, emailed 22 pages of addendums to which my buyer said “These are very one sided” (changes not allowed on addendums), initialled every page, signed many more, resubmitted. Two weeks later, we are pretty sure we have a deal, still nothing signed by seller, but don’t miss that closing date or per diem to $100 per day kicks in. I repeat NOTHING signed by seller. 1/24/09 through 3/12/09 and counting… Wrote another one yesterday, let the games begin.
The listing agents are working with high inventory (I hope that makes you cringe like it does me..) and response time is sluggish, snails pace, slow! One agent has explained it this way; the list agents point of contact may be working with 50 properties at one time, they service regions…so plainly this one is not their baby.
[Editorial comment - really does that make any sense? We must move this inventory doesn't a quicker pace seem more pragmatic? Hire some folks, I hear we have a jobs issue. Inevitably, every potential foreclosure buyer has asked me, "Don't they want to sell it? That's how slow.]
3. Testing – Gotta pay the freight if you want to check out the mechanicals, most of these foreclosure properties are winterized and without electricity. Cost to buyer to get property up and running for inspections starts at $150 and goes up from there…no refunds! No personal checks! Plus, tests are for informational purposes only….bank owners will make no repairs.
4. Price – That is about all that is RIGHT. The foreclosure sales are priced well, but please be sure you have the stamina and patience to go the distance.
5. Condition of property – This is an amendment to my original thoughts on this matter, I have personally shown a few that with just a smidge of effort would be dreamy, but by and large most are for the hardy and handy. I hereby rescind my ALL are stinky comment
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