Saturday, April 18, 2009

Foreclosures on Lakeshore, Acreage and New Construction in Chisago County that YOU will WANT to Call Home!

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 Chisago County this past week:

  • 75 feet of lakeshore on Lindstrom’s South Center. Executive lakehome with all the upgrades previously priced at $475K; now listed for less than $260K!
  • Chisago Lakes Acreage! Newer one level 5BR ranch home with pole barn& five acres. Previously listed at $360K now priced at $235K.
  • Brand new 1.5 story log home on 5 Acres in Fish Lake Township. Originally listed for $500K but now sold by the bank for over $200K less!
  • 80 feet shoreline on South Center. New Construction 2 story! 3BR/2BA was almost $800K bank selling for $600K.
  • Modified 2-story in Wyoming on 3 acres 3000+sq ft and 5 car garage. Listed originally at $450K but bank has listed for $315K.
  • Newer North Branch multi-level w/3car on wooded acre. Listed originally for $260K, bankowned price under $160K.
If you are in the market for a great deal on a foreclosed home, time to get a buying strategy put together because the rules to buy a REO or bank-owned home are a bit different than when working with a traditional seller. Good homes at great prices go very quickly so you have to be ready to make your move when you see a deal!

Seven Tips for homebuyers considering a foreclosed home:

  1. 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.

  2. Banks most often reject lowball negotiation. They are a business and know the value of the asset they are selling.
  3. Well priced foreclosed homes get multiple offers. Serious buyers put in their best bid first.

  4. Banks sell homes AS-IS. What you see is what you get. Repairs will not be made.

  5. 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.

  6. 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.

  7. 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