Tips for Buying a Foreclosure on Minnesota Acreage

Even as prices rose in the Minneapolis/St. Paul metro this spring and summer, there were still deals to be had on Minnesota Acreage. There are dozens acreage homes that currently listed  throughout the north and eastern suburbs of the Minneapolis/St. Paul area. Not all are foreclosures or short sales either. But if you do decided to attempt to purchase a distressed property, you need to be aware it has vast differences than buying from a more traditional seller. For instance, when buying a bank-owned property most buyers are required to waive their right to a seller’s disclosure. This actually does make sense since no one at the bank actually lived at the home and can properly complete the disclosure. In fact, it is doubtful that anyone at the bank has ever set foot on the property. So when buying a foreclosure on acreage, what other things need to be considered to protect yourself?

**Ask for a Compliance Test for the Septic System.

 

Most rural homes have a private septic system to handle sewage and waste water. Not all systems are created equal. They are designed for the specific property and size of the home. Even a new septic system can fail if not properly maintained. How do you know if the septic system is working? Ask the bank to have a third party inspect the system and  supply a report of compliance. This MUST be written into your purchase agreement as a contingency of purchase. (i.e. Sale is contingent on the buyer reviewing a current compliance certification for the septic system.) Be aware however that often times a bank will say the testing is the responsibility of the buyer. This testing can cost several hundred dollars. But replacing a failing septic will cost thousands!

If you have never lived on a home with a septic system, it is important to educate yourself on how to best maintain your system. Additional information on Septic Systems.

**Well Disclosure is Mandated by State Law

 

In Minnesota, well disclosure is mandated by state law as a part of the Ground Water Protection Act. A seller, even if it is a bank, must provide information on the location and status of all wells on a property at the time of sale. If this information is known and not provided, the buyer has 6 years in which to file a claim against the seller. If you chose to waive your rights when buying a foreclosure AS-IS and it is a large acreage parcel of land, it is a good idea to visit the MN Dept of Health webpage on Finding Abandoned Wells prior to purchase. Abandoned wells can be very expensive to seal properly. Improper sealing is not only illegal, it can be detrimental to the ground water. Additional information on Private Wells.

**Are there any underground fuel tanks?

Often people looking at acreage for the first time will have questions about the huge propaneMinnesota State Fire Marshal as well as the Minnesota Pollution Control Agency.
fuel tank located near the home. These tanks are usually only seen in the city at gas stations where homeowners fill their small propane tanks for the weekend BBQ. In the country, the large tanks are in many backyards as the source of fuel to heat the home and run appliances. But what if there is no visible tank? Don’t immediately assume the home is heated with natural gas. Homes on large acreage are rarely heated with natural gas as the cost of bringing the gas line to the home can be cost prohibitive. Check for underground fuel tanks or an fuel oil tank in the basement. Even if there is a propane tank visible, there could be an old fuel tank on the property either above or underground. The removal of underground fuel storage tanks can be dangerous and is regulated by the

**Check the Trees! 

Buying a home AS-IS also applies to the landscaping. If there are dead trees on the property, it would be a good idea to assess them to see if they died due to a disease. The big three in Minnesota are oak wilt, Dutch elm and the Emerald Ash Borer.

Not every question about buying an acreage property is unique to bank-owned homes. CLICK HERE for more answers to common questions buyers have when purchasing a home on Minnesota acreage. Also, keep in mind to consider all options. Many buyers have found after weighing all the pros and cons that the best deal on a home with acreage may not be a foreclosure or short sale!

   
Copyright 2013 www.terieckholm.com

Tips for Buying a Foreclosed Home on Minnesota Acreage

Though prices are starting to edge upward in the Minneapolis/St Paul metro area, current prices on acreage properties in the north and east metro are still extremely attractive. Throughout Anoka County, Chisago County and northern Washington County there many homes on large and small acreage that are quite affordable. However, buying a foreclosure is different than buying a  home from a more traditional seller. The biggest difference when buying a bank-owned property is that buyers almost always required to waive their right to a seller’s disclosure. This actually does make sense since no one at the bank actually lived at the home and can properly complete the disclosure. In fact, it is doubtful that anyone at the bank has ever set foot on the property or even the state of Minnesota for that matter. So when buying a foreclosure on acreage, what other things need to be considered to protect yourself and do your due diligence?

**Ask for a Compliance Test for the Septic System.

 

Most rural homes have a private septic system to handle sewage and waste water. Not all systems are created equal. They are designed for the specific property and size of the home. Even a new septic system can fail if not properly maintained. How do you know if the septic system is working? Ask the bank to have a third party inspect the system and  supply a report of compliance. This MUST be written into your purchase agreement as a contingency of purchase. (i.e. Sale is contingent on the buyer reviewing a current compliance certification for the septic system.) Some banks will not do this test, so be prepared to pay for a compliance test yourself or assume the cost associated with any potential septic failure in the future.

If you have never lived on a home with a septic system, it is important to educate yourself on how to best maintain your system. Additional information on Septic Systems.

**Well Disclosure is Mandated by State Law

 

In Minnesota, well disclosure is mandated by state law as a part of the Ground Water Protection Act. A seller, yes even a bank, must provide information on the location and status of all wells on a property at the time of sale. If this information is known and not provided, the buyer has 6 years in which to file a claim against the seller.

If you chose to waive your rights to disclosures when buying a foreclosure AS-IS and it is a large acreage parcel of land, it is a good idea to visit the MN Dept of Health webpage on Finding Abandoned Wells prior to purchase. Abandoned wells can be very expensive to seal properly. Improper sealing is not only illegal, it can be detrimental to the ground water. 

**Are there any underground fuel tanks?

Often people looking at acreage for the first time will have questions about the huge propane fuel tank located near the home. These tanks are usually only seen in the city at gas stations where homeowners fill their small propane tanks for the weekend BBQ. In the country, the large tanks are in many backyards as the source of fuel to heat the home and run appliances.

But what if there is no visible tank?  Could there be an underground fuel tank somewhere on the property?

Don’t immediately assume the home is heated with natural gas. Homes on large acreage are rarely heated with natural gas as the cost of bringing the gas line to the home can be cost prohibitive. Check for underground fuel tanks. Even if there is a propane tank visible, there could be still be an old fuel tank on the property either above or underground. While this is a required disclosure by a traditional seller, a bank will not know whether there is an underground tank or not. The removal of underground fuel storage tanks can be expensive and dangerous. The removal procedure is regulated by the Minnesota State Fire Marshal as well as the Minnesota Pollution Control Agency.  

**Check the Trees! 

Buying a home AS-IS also applies to the landscaping. If there are dead trees on the property, it would be a good idea to assess them to see if they died due to a disease. Many times the value of the acreage is in the mature trees surrounding the home but there are several diseases and parasites that can wipe out acreage landscaping. The big three to be concerned with in Minnesota are oak wilt, Dutch elm and the Emerald Ash Borer.

Copyright 2012 www.terieckholm.com

Buying a Foreclosed Home on Minnesota Acreage

The current prices on Minnesota Acreage are nothing short of astounding. There dozens acreage homes that are currently available throughout the north and eastern suburbs of the Minneapolis/St. Paul area. However, buying a foreclosure is different than buying from a more traditional seller. The biggest difference when buying a bank-owned property is that buyers are required to waive their right to a seller’s disclosure. This actually does make sense since no one at the bank actually lived at the home and can properly complete the disclosure. In fact, it is doubtful that anyone at the bank has ever set foot on the property. So when buying a foreclosure on acreage, what other things need to be considered to protect yourself?

**Ask for a Compliance Test for the Septic System.

 

Most rural homes have a private septic system to handle sewage and waste water. Not all systems are created equal. They are designed for the specific property and size of the home. Even a new septic system can fail if not properly maintained. How do you know if the septic system is working? Ask the bank to have a third party inspect the system and  supply a report of compliance. This MUST be written into your purchase agreement as a contingency of purchase. (i.e. Sale is contingent on the buyer reviewing a current compliance certification for the septic system.)

If you have never lived on a home with a septic system, it is important to educate yourself on how to best maintain your system. Additional information on Septic Systems.

**Well Disclosure is Mandated by State Law

 

In Minnesota, well disclosure is mandated by state law as a part of the Ground Water Protection Act. A seller must provide information on the location and status of all wells on a property at the time of sale. If this information is known and not provided, the buyer has 6 years in which to file a claim against the seller. If you chose to waive your rights when buying a foreclosure AS-IS and it is a large acreage parcel of land, it is a good idea to visit the MN Dept of Health webpage on Finding Abandoned Wells prior to purchase. Abandoned wells can be very expensive to seal properly. Improper sealing is not only illegal, it can be detrimental to the ground water. Additional information on Private Wells.

**Are there any underground fuel tanks?

Often people looking at acreage for the first time will have questions about the huge propane fuel tank located near the home. These tanks are usually only seen in the city at gas stations where homeowners fill their small propane tanks for the weekend BBQ. In the country, the large tanks are in many backyards as the source of fuel to heat the home and run appliances. But what if there is no visible tank? Don’t immediately assume the home is heated with natural gas. Homes on large acreage are rarely heated with natural gas as the cost of bringing the gas line to the home can be cost prohibitive. Check for underground fuel tanks. Even if there is a propane tank visible, there could be an old fuel tank on the property either above or underground. The removal of underground fuel storage tanks can be dangerous and is regulated by the Minnesota State Fire Marshal as well as the Minnesota Pollution Control Agency.  

**Check the Trees! 

Buying a home AS-IS also applies to the landscaping. If there are dead trees on the property, it would be a good idea to assess them to see if they died due to a disease. The big three in Minnesota are oak wilt, Dutch elm and the Emerald Ash Borer.

Copyright 2011www.terieckholm.com

Unexpectedly Amazing Bank-Owned Homes on Lakeshore & Acreage throughout Anoka County!! (And some by traditional sellers too!)

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 Anoka County today:

• New Construction Foreclosure Brick Rambler in Ham Lake! Acre lot, 6 car attached garage, executive 4BR/3BA with hardwood, tile, vaults and more. 80% complete. Builder price $480K, bank asking $279,900.


• 3500 Sq ft Executive Rambler on Ham Lake acreage. 4BR/3BA/4Car on 1.8 acre lot. Cherry cabinets. Hwd floors, media room, 2 decks +++ Builder listed for $799K in 2007. Bank asking $499K.


• 4+ Beautiful Acres 5BR/2BA/3Car in Columbus. Originally sold in 2005 for $322K…Bank asking $175K.


• 1996 Built Modified 2 Story on 25+Acres in St Francis 4BR/2BA with 3 car, wooded setting, Hwd floors, Master suite, gas fpl in finished family room listed by bank for $239K!


• Coon Lake Shoreline 4BR/5BA/5Car in Ham Lake 85+ft shoreline and 2+Acres. Entertainers dream 2 Story w/2 full kitchens &Master suites! w/o basement. Original list $650K now priced to sell at $454,900.


• 2 story on Pet Lake in Linwood! Not a foreclosure, but priced like one! Just listed today at $180K ($40K under tax value)! Well maintained 2BR/3BA/2Car w/Hickory cabinets and SS Appliances.


• New Construction Foreclosure 5BR Two Story in Ham Lake! Acre lot, Completely finished with upgrades: Cherry cabinets, upstairs laundry, private master suite. Builder price $570K, bank asking $369,900

If you are in the market for a great deal on a foreclosed home, time to get organized because the rules to buy are a bit different than when working with a traditional seller.
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 reject lowball offers...no 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.

Are YOU ready to get a great deal on a foreclosed home? Let me be your professional REALTOR®! If you are buying, selling or relocating to Minnesota and need help from a professional REALTOR®, give me a call or visit my website for a FREE Relocation Packet , Homebuyers Success Packet or sign up for Listingbook Twin Cities Home Search. I specialize in acreage and lakeshore properties in the north and east Twin Cities metro area including Ham Lake, Lino Lakes and all communities in the Forest Lake School District! Serving Anoka, Chisago, Ramsey and Washington Counties in Minnesota.

Copyright 2010 Teri Eckholm

Lakeshore, Acreage and New Construction Foreclosures that are Move-In Ready for Washington County Homebuyers!

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 while perusing theTwin Cities MLS in Washington County today:

• 4+Acres in Lake Elmo. Beautiful acreage 2002 built two story 4BR/4BA/3Car home with over 3800 square feet of finished living space. Tax value $699K; bank priced $200K less
• Lakeshore Beauty!! Almost 4700 sq ft finished, 6BR, 2 story with bank of windows to view Forest Lake. Previously listed at 700K, bank listed for under $460K.
• Brick Rambler on 5 Acres Near Afton Alps! 5BR/3BA/3 car built in 2003 with picture perfect oak floors and huge master suite. 4000+ finished. Originally listed at $624K but foreclosure priced at $349K!
• BRAND NEW 4BR/3BA townhome with vaulted ceilings in Forest Lake. Stainless appliances, cherry cabinets, master suite and more! Tax valued at for $262K…Bank asking $200K.
• 2Story Oakdale New Construction Beauty! 5BR/4BA with 3 car built in 2007 with granite, stainless, 4 BR on one level and more. Builder asking price $600K but bank asking $424K.

If you are in the market for a great deal on a foreclosed home, time to get organized because the rules to buy are a bit different than when working with a traditional seller.
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 reject lowball offers...often with no 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. Buyers must be prepared to make all necessary repairs out of their own pocket after closing.


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 http://www.terieckholm.com/

Unexpectedly Amazing Bank-Owned Homes on Lakeshore, Acreage and throughout Anoka County!

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 very good condition. Some still may require a bit of cleanup or a few cosmetic changes but there are many homes that you can move right into too!


Here are a few of the treasures I noted on the Twin Cities MLS in Anoka County this weekend:

• New Construction Foreclosure on Coon Lake! 60ft of shoreline and brandnew 4BR/2BA on north side of Coon Lake in East Bethel. Builder listed at $600K;bank priced ½ off at $299K.


• East Bethel Acreage with underground sprinklers, master suite and 4BR on one level. 4BR/3BA with 3 car built in 2001 and EXTRA garage sold for $393K just listed this weekend by bank for $222K!


• Bank-owned New Construction 5BR/4BA Rambler in Ham Lake. Executive home with 5 car attached garage. Tax valued at $589K bank asking $499K includes heated garage, wet bar, landscaping!


• 3BR/2BA/3Car 2004 built splitlevel on 3 acres in Burns Township. Just listed this weekend for $139K. Originally sold in 2004 for $265K.


• Modified 2 story 3BR/2BA/3 Car on 1/4 ac in St. Francis. Just listed this weekend for $169,900 by bank. Anoka County tax value $219K--$50,000 higher than asking!


• Brand NEW Andover One-Story Twin Home! 2BR/2BA/3Car with master suite. Builder priced at $265K...Bank asking $150,000!

If you are in the market for a great deal on a foreclosed home, time to get organized because the rules to buy are a bit different than when working with a traditional seller.
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 reject lowball offers...often with no 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. Buyers must be prepared to make all necessary repairs out of their own pocket after closing.


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 http://www.terieckholm.com/

Unexpectedly Amazing Bank-Owned Homes on Lakeshore, Acreage and throughout Anoka County!

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 Anoka County this weekend:

• New Construction Foreclosure on Coon Lake! 60ft of shoreline and brandnew 4BR/2BA on north side of Coon Lake in East Bethel. Builder listed at $600K;bank prices nearly ½ off at $309K.
• Bank-owned New Construction 5BR/4BA Rambler in Ham Lake. Executive home with 5 car attached garage. Tax valued at $589K bank asking $499K includes heated garage, wet bar, landscaping!
• East Bethel Acreage with underground sprinklers, master suite and 4BR on one level. 4BR/3BA with 3 car built in 2005 and sold for $393K just listed this weekend by bank for $238K!
• Brand NEW 2BR/2BA/3CAR Rambler Twinhome in Andover. Master suite, vaults, walk-in closets. Builder priced $265K...Bank asking over $100K less at $150,000!
• Just Listed 2004 Modified 2 story in St Francis with 3BR/2BA/3Car on 1/4 acre with open floor plan. Sold for $243K in 2005...Bank asking $169K.

If you are in the market for a great deal on a foreclosed home, time to get organized because the rules to buy are a bit different than when working with a traditional seller.
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 reject lowball offers...often with no 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. Buyers must be prepared to make all necessary repairs out of their own pocket after closing.


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 http://www.terieckholm.com/

Washington County Lakeshore, Acreage and New Construction Foreclosures that are Move-In Ready for Homebuyers!

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 weekend:

• 2003 Built Forest Lake 2 Story. Picture-perfect 3BR/3BA/3Car home with over 2100 square feet of living space finished and unfinished basement. Last year listed at $425K bankpriced at $255K.


• 4BR on one level 2Story in Landings of Summerfield Forest Lake. Built in 2006 with all the bells and whistles…Master suite, granite counters, maple cabinets. Tax valued $430K…Bank asking $309K.


• Lakeshore Beauty!! Almost 4700 sq ft finished, 6BR, 2 story with bank of windows to view Forest Lake. Previously listed at 700K, bank listed for under $460K.


• 2BR/2BA end unit townhome with vaulted ceilings in Forest Lake. Originally sold in 2005 for $173K…Bank asking $119K.


• Rambler on 1/2Acre with Egg Lake View in Hugo! 4BR/3BA with 3 car built in 2005 and sold for $539K now asking $449K and not even in foreclosure!


• 4BR/2BA on 5Acres in Hugo. Sold in 2006 for $345K bank asking $180K includes seller pd new septic system!


• New Construction Home in Victor Gardens Hugo with 2100 sq ft finished tudor with creek view priced originally at just under ½ a million but bank has listed for $369K.


• West Lakeland Executive 2.8 acre Estate. 4BR/4BA/3car 2story home with nanny’s quarters and inground pool. Originally asked $900K, bank priced $580K.

If you are in the market for a great deal on a foreclosed home, time to get organized because the rules to buy are a bit different than when working with a traditional seller.

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 reject lowball offers...often with no 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. Buyers must be prepared to make all necessary repairs out of their own pocket after closing.


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 http://www.terieckholm.com/