by admin | August 6th, 2009
An interesting article from our friend Marc Rasmussen in Sarasota
Finding a Foreclosure
‘Foreclosures’ and ‘Short Sales’ are today’s buzz words in the real estate world. I get contacted on a daily basis from prospective home buyers looking to pick up one of these properties cheap. The belief by many is that all of these types of properties are great deals. That is not true. There are some great deals to be found by those who are diligent and have the ability to act quickly.
3 Tips to Finding a Great Deal in Foreclosures and Short Sales
1) Learn the market
How do you know what a good deal is if you don’t know the market? I could hit you over the head with a property at a great price but if you don’t know the market you probably won’t buy it. By the time you do your homework and have learned the market someone else has probably purchased the property. Find yourself a good Realtor who is knowledgeable and pick their brain. Also, have him/her start emailing you properties for sale and properties that have sold in the areas and price ranges that you are looking for. Through this process you will have a better understanding of the market and what represents a good deal. If three similar homes recently sold in a neighborhood for around $200,000 and a foreclosure comes on the market for $175,000 you will know that this could be a good deal. Only through learning the market have you realized that this could be a good deal.
2) Find a Good Realtor
A good Realtor can help you learn the market. They can send you information from the MLS system to help you understand what is selling, not selling, current prices etc. A misconception by many is that you can get 50% of the asking price of these types of properties. Sarasota foreclosures and Gulf Shores Foreclosures are selling on average for about 93% of the list price. Set realistic expectations for yourself. You probably are not going to find a home that you can immediately flip and make a bunch of money.
Your Realtor should also be able to set you up on an automated email system where foreclosures are sent to you the minute they come on the market. This is important because there are many people out there waiting for them to come on the market. You need to be the first one in the door.
3) Prepare and Act Quickly
Get your financing lined up before you find a foreclosure or short sale. Most banks are not going to take your offer seriously unless you can prove that you have the cash or have a pre-approval letter from the bank. Don’t waste your time, the banks time, the Realtors time and everyone else’s time by hunting for property that you can’t buy. Get your funds arranged ahead of time.
Once you know the market, have funds or a mortgage ready and are getting foreclosure updates from your Realtor you are now ready to go. You are now prepared to act if a good deal comes across your email.
Thank you,
Marc Rasmussen | Michael Saunders & Company | 1801 Main Street | Sarasota, FL 34236 | Cell: 941-812-6272 | MarcRasmussen@michaelsaunders.com | www.LuxurySarasotaRealEstate.com
