Foreclosure Advice for Clients
Yesterday, Let’s Talk Real Estate kicked off the spring home buying season with tips for buying a foreclosure. Your client’s dream home might be more accessible, and more affordable, than ever. In the Miami, FL area, for example, foreclosures increased 96 percent between 2007 and 2008 according to RealtyTrac. At the same time, median sales prices of existing single-family homes decreased 19 percent (or nearly $54,000) to $234,200 in the Miami-Ft. Lauderdale-Pompano Beach area, according to the National Association of REALTORS®.
Make sure your client is fully informed about how to buy a foreclosure property, and how the process might be different than a traditional transaction. Here are five more tips to get you started this home buying season:
1. Negotiate wisely: Do your homework and know what prices the neighborhood will support. The Find Home Values tool on REALTOR.com® is a great place to start. Work with your client to establish a realistic bid price. Keep in mind that an insultingly low offer can ruin negotiations.
2. Be aware of current residents: Once your client owns a foreclosure property that they will manage as a rental, any tenants and all landlord duties will become their responsibility. This may include handling evictions.
3. Research home values: Just because a house is a foreclosure doesn’t necessarily mean it’s a bargain. The Find Home Values tool will also help here in gaining understanding about how much the home is worth.
4. Know the neighborhood: Make sure to be knowledgeable about the surrounding area of the foreclosure property you are interested in. Realtor.com can help you find average home and rental prices, household income, community history and personality. You can also find resident lifestyles and proximity to professional sports franchises or universities in your area of interest.
5. Never assume that the sale is final: In some states, owners have up to 180 days to repay any debts they may owe. Keep that in mind as you near closing on any foreclosure property.
March 04 2009 06:09 pm | Real Estate News