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We've been looking at Raleigh area houses online and of course included in those are some owned by the bank as a result of foreclosure.
My question is this...
For comparable homes (both listed by local realtors) with one being sold by the family who lives there and the other by the bank...what are you thoughts on the differences on buying these houses? Typically, would one be more willing to negotiate on the price, etc. than the other? Is there room for negotiations with the bank at all? Any other thoughts?
In a foreclosure you may run into property that has been neglected or demolished by angry and hurt former owners. Not sure how the banks deal with negotiations or repairs if they are needed...?
It honestly depends on who owns the house that is in foreclosure. Regardless there seems to be less negotiation in terms of price, etc. Most foreclosure homes are being sold as is, meaning they are not planning on doing any repairs, some foreclosure properties will not let buyers perform inspections until after the deal is done. It honestly all depends on who is holding the lien on the house.
Some companies have a schedule of when they are going to reduce the price and they do not like to waiver from that (generally it seems to be every 6 weeks), and I had one client who made an offer on a property, it was declined over price, then 2 weeks later they reduced the price (he had been watching the home for a while) and he made another offer, and he ended up settling with a price that was lower than his original price two weeks beforehand.
All in all the foreclosed properties tend to negotiate less, but that is just ball park.
Don't forget hiring a lawyer if you want to buy foreclosed property since there may be liens or unpaid homeowner's fees, etc.
If the buyer is going through the same process of buying a home w/ a real estate agent and a closing attorney, is it neccessary to hire an additional lawyer (just b/c the home is a foreclosure)?
Most foreclosure homes are being sold as is, meaning they are not planning on doing any repairs, some foreclosure properties will not let buyers perform inspections until after the deal is done.
Would this be clearly stated in the info posted to MLS (have seen 'sold as is' on some homes that are/are not foreclosures) or would the buyer learn this when they submit an offer?
Also, based on your experience at what point would a buyer learn about the no-inspection policy?
Quote:
Originally Posted by leighbhe
Some companies have a schedule of when they are going to reduce the price and they do not like to waiver from that (generally it seems to be every 6 weeks), and I had one client who made an offer on a property, it was declined over price, then 2 weeks later they reduced the price (he had been watching the home for a while) and he made another offer, and he ended up settling with a price that was lower than his original price two weeks beforehand.
Now, that's luck! The houses we've seen thus far that are to our liking are comparibly priced to others not going through foreclosure, so this is definitely something to consider if we do decide to put in an offer.
Your closing lawyer can protect your interests as part of their job.
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