Are You Frustrated With the Real Estate Foreclosure Market In Cape Coral Florida
#1 Understand how fast the market is moving on “good” foreclosures- A correctly priced foreclosure can be on and off the market within 24-48 hours. You need to be prepared to move quickly.
#2 Know what to do before making an offer – Get pre-approved for financing…some banks require that you obtain pre approval from their own bank, understand that you are not obligated to use them though. If you are paying cash, you will need a letter from your bank stating that you have sufficient funds to close. Whether paying cash or financing, all offers must have some form of proof submitted with your offer.
#3 Know the difference between a short sale, a foreclosure, a HUD home and a REO- A foreclosure, HUD home and a REO are all the same in one way; the bank has taken possession of a house through foreclosure. A short sale is where the distressed homeowner has permission from the mortgage holder to sell the house “short” of the balance of the mortgage. There is nothing short about a short sale. A signed sales agreement between the homeowner and buyer is sent to the mortgage holder for approval, who will review the hardship and then decide if it’s in their best interest to move forward.
#4 Know that the asking price on foreclosures is often lower that the sold price- your Realtor will be able to produce a market report that shows what foreclosures are doing in the same area of the house in question. If the trend is for the house to sell at 15% above asking price, then it needs to be taken into consideration before making an offer.
#5 Realize that a really low price means a bidding war- banks love multiple offers! If the market report your Realtor presents you with suggests a more realistic price, you may want to consider going in that direction from the first offer.
#6 Discover hidden defects before you buy a home- Get a professional home inspection.
#7 Realize that there is an inspection period- If an inspection produces any negative results, the buyer may terminate the contract and receive deposits back.
#8 Check to see if incentives exist for buyers- Fannie Mae Homepath houses feature as low as 3% down payment, no mortgage insurance for high loan balances, the contract price is the appraised value and is available for designated homepath foreclosed homes. With a renovation/purchase loan, you can add up to $35,000 to the purchase price and be used by a professional contractor to upgrade/repair the home with appliances, cabinets and other needed home repairs.
#9 Realize how many other people are looking the THE GREAT DEAL, too- SW Florida is in the news as one of the most underpriced housing markets in the country. A combination of aligning yourself with a great buyers agent, alertness to new foreclosures, being ready to pounce quickly, and patience with the fact that you may have to repeat the offering process will reward you with your very own GREAT DEAL.
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