February 29th, 2012 Categories: Foreclosures
There will likely be a lot of competition for foreclosed homes on the Pensacola real estate market in 2012.
Last year the supply of great deals on foreclosure homes shrank, because banks temporarily stopped trying to repossess properties to review possible paperwork errors, also known as “robo signing”. But I suspect it will be a different story in 2012. Lenders are starting to resume foreclosure filings, so more of these distressed homes are expected to be listed for sale.
“There’s such demand from buyers,” said Judy Trudel, a real estate agent for Balistreri Realty in Florida’s Palm Beach and Broward counties. “Whatever foreclosures hit the market this year will be eaten up.” This may also be true for the Pensacola market.
Here are some tips on finding and successfully purchasing a foreclosure.
1. Locate foreclosures: This part is actually simple. If you contact me ([email protected] or call me at 850-206-6140) I can provide you with free auto emails which will notify you of any foreclosed property that comes onto the Pensacola real estate market. Just tell me what you are looking for (price range, area of town, number of bedrooms/baths etc). I can customize a search for you and you’ll be notified about every new foreclosure that fits your criteria.
2. Make your offer stand out from the competition
Start with your best offer: This isn’t 2007 or 2008, when sales were sluggish and sellers were thrilled with any offer. Demand creates bidding wars.
“If I was a purchaser, I definitely wouldn’t go in (offering) less than the asking price,” said Summer Greene, a Fort Lauderdale real estate manager and the 2012 president of the Florida Realtors trade group. Of course, this assumes the asking price is fair. I can run comparisons on other similar properties in the area and let you know if it is indeed a good value for the asking price.
Consider making a hefty good-faith deposit. Upon making an offer, a typical buyer puts down $1,000 to convey interest. Buyers who want to impress the bank may want to offer substantially more. If you are not familiar with the good-faith deposit concept, please read my article Earnest Money: Clarifying the Confusion for Pensacola Home Buyers .
3. Be accommodating
Work with the bank however you can, within reason. Volunteer to close quickly. When submitting offers, turn in all the requested paperwork. If a bidder forgets to include a “proof of funds” letter or other documents, the bank may just move on to a more complete offer. This is where a good real estate agent can be invaluable. I can make sure everything is done correctly.
4. Don’t skip the home inspection
There have been reports of banks demanding the buyers purchase a foreclosure without an inspection. Obviously, this is a bad idea. See my report Redneck Ingenuity Makes Home Inspections a Must .
Remember, first you have to find the foreclosed homes when they come on the market. There are a multitude of sites that allow you to perform these searches, with varying degrees of accuracy and costs, not to mention the large amount of time you will spend manually searching these sites. Take the guess work and time waste out of your search. Just contact me and I’ll take care of it for you, at no cost to you. You will never be spammed, only emailed the foreclosed listings you request as they come on the market.