Looking for a foreclosure, bank-owned or short sale but need to be able to live in the home immediately after closing?
Good news is that foreclosures are no longer always trashed, fixer-uppers. Today's foreclosures can be simply AWESOME! This economy has forced builders and responsible homeowners alike to let amazing properties go back to the bank. Many are still in pristine condition. Some still may require a bit of cleanup or a few cosmetic changes but there are many in move in condition too.
Here are a few of the treasures I noted on the Twin Cities MLS in Washington County this past weekend:
- 50 feet of lakeshore on Forest Lake’s first lake. Newer home with over 4600 square feet of living space and under $500K.
- Executive log home on 5 Acres of Scandia countryside. Previously listed at $600K now priced at $309K.
- Brand new end unit townhome with master suite in Forest Lake. Originally listed for $297K but now sold by the bank for $169K.
- New Construction Executive homes in Lake Elmo 5BR/4BA two stories that listed originally at the $1 million mark, now being offered by the bank for $780K.
- Rambler in Stillwater on 3.5 acre executive estate with 2900 sq ft foundation and 8 car attached garage listed originally at $1.5 million but bank has listed for $650K.
Seven Tips for homebuyers considering a foreclosed home:
- Banks LOVE clean offers. Buyers MUST be preapproved with credit checked and employment and funds verified. Documentation must accompany the offer or it won't be considered.
- Banks reject lowball offers...no negotiation. They are a business and know the value of the asset they are selling.
- Well priced foreclosed homes get multiple offers. Serious buyers put in their best bid first.
- Banks sell homes AS-IS. What you see is what you get. Repairs will not be made.
- Banks will not pay for inspections in most cases. This includes the septic system and/or well. Be prepared as all inspections could end up being the buyer's responsibility. If you chose to inspect the septic or the county requires a septic compliance test, expect to pay $400-$500 for this inspection. A well test will run around $150. A whole house inspection is $350-$500.
- Personal property is not included as part of the sale. So if the appliances are at the home when you close, they are a bonus. The bank will not remove. But they don't guarantee will remain at the home or that they are in working order. This means if someone breaks in the home prior to the closing and takes them, the bank will not replace.
- Having your own REALTOR® to represent your interests is essential. The listing agent is under contract to represent the bank. In many cases, the bank will not allow a dual agency so if a buyer contacts the listing agent to write the offer, the buyer does not have representation. This means all of your information goes to the bank...the listing agent is required to tell the bank everything that you say about your financing and the amount you are able or willing to pay. But the agent is not required to tell you anything in return. The agent works only for the bank.
Copyright 2009 Teri Eckholm http://www.terieckholm.com/