Real estate and Property

Great Buys are Found in Foreclosure Homes for Sale

Buying foreclosure homes for sale is an uncharted territory for most of us.  We need to have a comprehensive understanding of foreclosure homes for sale as these are now regular occurrences during these times of crisis.

If we properly learn how to find the best buys in foreclosure homes for sale, this can be one of the best investment options for us in the uncertainty of the times.

Foreclosure homes offer great opportunities to potential buyers by opening up choice selections of prime properties at amazingly low rates.

What are Foreclosure Homes for Sale

Foreclosure homes for sale are unique types of real estate properties that are not sold through agents or brokers.  These are properties offered directly by the mortgage lenders with the intention of selling these foreclosure homes to other potential buyers and investors in order to raise money to prop up their liquidity.

Foreclosure homes are the real estate properties that a mortgage lender has taken over from their original homeowners who failed to make regular payments on a mortgage loan for an extended period of time.

These foreclosure homes are offered for sale through a public auction to interested homeowners and investors.

Who are Qualified to Buy Foreclosure Homes

Foreclosure homes for sale can be bought by any interested buyer or investor.  The potential buyer won’t need the services of a broker or an agent in order to participate in an auction of foreclosure homes.

What is great about these foreclosure homes for sale is that the price tag is much lower than in the open real estate market.  It is normal for you to find some foreclosure homes for sale being offered from 10% to 50% lower than it would normally fetch when sold in the open market or through an agent.

This very liberal feature in auctions for foreclosure homes for sale is predicated by the pressure on the mortgage lender to improve on their liquidity through successful auction of these real estate properties.

Many of these foreclosure homes are found in good locations, with practically no structural damages or defects.  It is really a wonder why it stays in the hands of the mortgage lender over long periods with no apparent takers.  The obvious reason for this is that the mortgage lenders are hesitant to invest more on these foreclosure homes for sale in the form of advertisements.

This is also the reason why foreclosure homes are not very popular among regular home buyers.  Most of us don’t know where to look for them. Therefore, it is essential for wise buyers and investors to do their own research to find these prime foreclosure homes for sale.

The high incidence of foreclosures that has been plaguing the real estate industry for a couple of years now has put to our consciousness the importance of foreclosure homes for sale.  These prime properties are getting their fair share of attention from potential buyers and investors.

The rewards to your effort can be enormous as you can find prime foreclosure homes for sale at really bargain prices, as most mortgage lenders are pressured to dispose of these assets to avoid additional expenses on maintenance and upkeep of these properties that are still in their possession.

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Five Common Mistakes Made Buying Hud Homes for Sale

You may have gone by a house and saw the orange stickers on the front door or windows. You looked at the sign stating this was a HUD homes for sale. It also said to contact a local real estate agent.

You looked around the property and thought this is what you have been looking for as a home for yourself or as an investment. The problem is you have not brought a HUD home for sale or you really don’t know what they are.

To begin with HUD homes for sale are HUD foreclosed homes. They are homes that have been financed by an FHA loan and the loan has gone into foreclosure. The HUD foreclosed home has been assigned to a Marketing and Management Contractor to service and market the property.

There are a lot of interest in HUD homes for sale by both home buyers and investors. They also are lot of mistakes made in buying HUD foreclosed homes. I am going to list 5 common mistakes made buying HUD homes for sale.

1. Finding a Real Estate Agent. I am listing this mistake in buying a HUD foreclosed home first because I think it is the most common and the most costly mistake. You probably think all you have to do is called any real estate agent or one that you have used in the past. It is my opinion that 95% of real estate agents have not sold a HUD home for sale or worst yet; most real estate agents don’t even know what one is. Buying a HUD home for sale is not anything like buying a home from a home owner. You need to search for a real estate agent that is experienced in HUD homes for sale.

2. Paying too much for the HUD Foreclosed Home. The HUD home for sale is listed at what HUD calls “Fair Market Value.” It has been appraised by a FHA appraiser. My experience has been that the list price of a HUD foreclosed home is within 20% of market value either too low or too high. Again that is another reason you need an experienced real estate agent in HUD foreclosed homes. The agent should do a Competitive Market Analysis of the property. An experienced agent also will be able to determine the lowest bid that HUD will take for the property.

3. Inspection. You should have an independent inspection done on the property. Most HUD homes sale will have what HUD calls a “Property Condition Report.” The Property Condition report is similar to an inspection and it gives you a pretty good idea of the HUD foreclosed home. You still need to have an independent inspection done.

4. Sold “As-Is” Condition. All HUD homes for sale are sold in “AS-IS” condition and HUD means AS-IS. They will not do any repairs! So when you make a bid on a HUD home for sale, you should adjust your bid amount to reflect needed repairs.

5. Closing Costs. HUD will pay up to 5% of the purchase price for certain Buyers’ closing costs. The 5% must be included in the initial bid and the key word is “certain” closing costs, not all. Again, I know I am repeating myself, but an experienced real estate agent in HUD foreclosed homes would know which closing costs HUD will pay. For example, your winning bid on a HUD home for sale was 0,000 and you asked HUD to pay 5%(,000) of your closing costs. HUD will only pay certain closing costs and those closing costs only came to ,000. You would LOSE ,000(,000-,000).

Buying HUD Homes for sale can be very profitable if you can eliminate the costly mistakes. Common mistakes that can be avoided by doing some research and finding an experienced real estate agent in selling HUD foreclosed homes.

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A Little Beforehand Preparation Makes for a Better Homes for Sale Selling Experience

With the current housing market, homes have gotten harder to sell. As a seller of a homes for sale, you will need to do more preparation for the sale before you list to ensure your home stands out amongst the competition.

Sellers of homes for sale must adjust their expectations. No longer does a home sell within a month of listing it on the market. Prices have dropped drastically, since the housing bubble has deflated, making it even more important than ever to present your homes for sale to its best advantage.

Professional Staging. Consider having your homes for sale professionally staged. I watched a show a few months ago, where a professional decorator not only restaged the interior of the home but also the second floor deck. Where the deck was once an uninviting, Spartan area with a couple of folding chairs, it became a warm, cozy and inviting retreat. It had wooden benches with soft cushions lining the deck rails, a copper fire pit (kept lit during showings for ambience), wooden end tables, large floor plants in every corner, plants hanging from the new lattice deck overhang. At the open house after being relisted, everyone liked the interior but fell in love with the deck. It sold within a month, after having sit for months at its original listing.

Hiring a designer to spruce up and restage your home can cost a little as 0 for the initial consultation. For a few hundred more, a professional stager will bring in plants, art and furniture, while you place your belongings in storage. Showing your homes for sale to its best advantage lets potential buyers see all the possibilities your home has, increasing buyer interest.

Environmentally Friendly. With energy costs on the rise and people taking a new interest in the environment, many buyers are looking for environmentally friendly features without having to incur the upfront costs. Be sure to ask the professional stager for some ideas on adding such features. Some inexpensive things you can do are to add energy-saving compact fluorescent light bulbs, replacing the wasteful incandescent bulbs. Put a compost bin in the backyard and filters on faucets. Ensure your realtor points out the energy efficient, yellow stickers on the hot water heater and furnace.

Fix It Up. If you wish to sell your homes for sale quickly, you cannot expect potential buyers to “fix up” the house, selling it “as is”. In today’s market, it is cheaper to fix a few things than take a great loss on the selling price. While fixing things, give the home a more contemporary look by replacing old kitchen and bathroom fixtures, cabinet knobs, ceiling light fixtures, and so on. Remove wallpaper, mirrored walls, and paneling from bygone eras, replacing them with painted walls. Paint all walls taupe (white is now passé).

Use the Internet. According to Errol Samuelson, president of realtor.com, more than 80 percent of potential homes for sale buyers check online listings. That means you have more exposure for your homes for sale, if your realtor has it posted on a popular real estate web site. Samuelson says that listings with at least six great photos of the homes for sale and a video tour get 300 percent more online viewers. The more viewers who see your homes for sale, the more buyer interest is generated. The more buyer interest, the faster your home will sell. Ensure you are taking advantages of this technology for your homes for sale.

Price Appropriately. I have seen many articles on how innovative sellers of homes for sale have become in order to ensure a quicker sale and better price. Incentives have been paid vacations to free gym memberships — you name it, a seller somewhere has probably offered it. Developer Robert Sheridan, owner of the Lakeshore Condomiums in the Andersen Springs community in Phoenix, found selling incentives an unsuccessful strategy. He offered free kitchen upgrades and financing incentives to no avail. In the end, he slashed prices by ten percent and sold his condos.

Many homes for sale owners are pricing their homes at last year’s prices, while potential buyers are looking for better deals. Unfortunately, the current housing market is supporting the buyers, not the sellers. You must be realistic when pricing your homes for sale. Listen to the advice from your realtor, who has the pulse of the current market. If necessary, check out current listings in your area for comparison. In the end, if your homes for sale is priced too high, it will not sell.

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