Glad Heart Realty Agent Sharon Eaton is sharing with us new developments coming to Kansas City. Stay tuned for more videos and information!
This blog is directed to a person or family who wants to buy a house to live in. This does not apply to investors who have cash, crews, connections, and experience.
If you are looking to buy a foreclosure, live there, and fix it up, it is a great idea if you can find the right house. A majority of foreclosures need a major amount of work, so you have to think about a few things.
The good news is you can usually have first crack at a foreclosure. There is a 10 day window when it hits the market that only owner occupied purchasers can bid on. This is to give the regular guy a chance, and not let the investors buy everything up.
My observations over the past few years:
Foreclosures usually drop the price $5,000 to $10,000 every 30 days, after 90 days they are more negotiable. They are not very negotiable in the first 30 days, and many times get above asking price.
Dealing with a bank is different than dealing with a seller (person), the bank is on their own time schedule.
Be prepared to walk away if inspections don’t go well. There is no renegotiating with the bank. You are buying the house as-is. I just learned this one the hard way J. You might hear otherwise, but 98% of the time they will NOT renegotiate for repairs.
I like to tell first time buyers that they may want to spend $20,000 to $30,000 more on a house and get something that is nicer. That is about $40 to $60 a month more. Instead of taking $1,000’s out of your pocket, and not knowing when it will end.
I have sold many foreclosed homes and have had happy clients. I just like to help people understand what they might be getting into. It is a big deal to buy a house!
What are your thoughts? Have any of you had a great experience or a bad experience with a foreclosure?
Receive emails with tips and articles that will help you on your journey to buy or sell your home. Stay updated with the latest information from Glad Heart Realty.