Most foreclosure properties do require some work prior to move in. There is the exception to that rule, but it's not very common. Generally speaking, you should expect to replace the carpet, if any, and re-paint the interior of the property. We work with an excellent Inspection company that will do a full inspection on the property prior to your purchase, so you know any future expenses that may arise.
Offer Process on Foreclosures
When looking at foreclosure or bank owned properties for sale, its best to pick a top 3 or 5 properties that meet your needs. The reason for this, is there's times when you may run in to competing offers, and it runs the price up considerably. The recent trend in this market is for banks to list the property 10-20% under the market value, with the intentions of creating a bidding war. This is something to be prepared for on some properties, as you may bid it above list price, but it will still be a great value. We can use our expertise to assist you in the offer process, so it goes as smoothly as possible. Once we've completed the paperwork for the purchase offer, now we wait for a response from the bank. This normally takes 3-4 business days.
Now that we have an accepted offer, the bank will send out their addenda for the buyer to sign. This addenda dictates the conditions and terms of the transactions. Once this is signed by the buyer, then it goes back to the seller for signatures. Once we have the purchase offer, and the bank addenda signed by both the buyer and the seller, now we can open escrow, and we have an executed contract.
From this point the transaction proceeds like a regular transaction, with the exceptions listed below.
Foreclosures vs. Regular Sale
- Property is purchased in "As Is" Condition
- No property history report
- No Insurance claims history
- Can have missing appliances, fixtures, and fix ups needed prior to move in
- Likely to get into a multiple offer situation due to low asking price