Interested in buying a Park City real estate, specifically a foreclosure? Well, the steps to buying REOs are a bit different than buying other types of homes. When buying foreclosures, you have to be prepared for a speedy process, as banks are generally desperate to get rid of them as quickly as possible.
How Buying Foreclosures Differs from Other Home Sales
When you buy a local ank owned property, there are a few differences from purchasing other Park City real estate:
- Typically just one real estate agent is involved in the transaction… the selling agent.
- The seller (the bank) will require a pre-approval letter from your lender before they accept your offer.
- Usually, no negotiations, or very little, will be allowed.
- The foreclosed home will be sold as is… no exceptions.
- Since most REOs are vacant, you’ll take possession of the home fairly quickly.
According to Brad Jensen of Park City’s Jensen and Company, it’s not always easy finding and buying foreclosures. The biggest benefit is the fantastic pricing you’ll come across. However, one downside is that you’ll probably have to view quite a few foreclosures and submit lots of offers before you find the REO you really want. That’s why it’s best to work with a local Park City real estate agent who specializes in local foreclosures.
5 Steps to Buying a Foreclosure at a Great Price
When buying a foreclosure, one of your #1 goals should be to get a great deal. That means getting an excellent price for a house that’s actually worth the buck. Follow these seven steps to ensure that the foreclosure you choose is a great buy for you:
- Look for listings that have been overpriced. These foreclosures usually stay on the market for quite a while without getting offers. Make one and see how quickly the bank jumps to attention.
- Make sure the costs of repairs is practicable. If repair costs, combined with the costs of buying the home equal to more than the property is worth in top condition (based on comparables), this is not a good deal.
- Pay cash for your REO. Of course, this is not always an option for every buyer. But, if you have the cash, you’ll get a much better price than you will financing your foreclosure, since the bank really wants to get rid of it fast. Plus, you’ll save even more over time by not having to pay interest on a mortgage loan.
- Look for amenities not listed in the ad. For this step, you’ll have to actually go out and physically view the properties, not just rely on what’s in the ad for the listing. Certain amenities, such as a huge backyard, mountain views, upgraded landscaping, green-upgrades, etc… can make a property much more appealing. In the end, this increases the overall value of the home.
- Work with a local real estate agent. This cannot be reiterated enough: the local agent you hire must specialize in selling local foreclosures for you to get the best deal possible. A savvy agent will also ensure that the buying process goes as smoothly as possible as well.
How to Buy a Park City Real Estate Foreclosured Homes
Utah Bank Owned properties are priced to sell fast. So, they tend to attract multiple offers. That’s why it’s so important to work with an experienced foreclosure agent. Your agent will help you make an offer that the banks will actually notice.
Interested a buying foreclosures or other Park City real estate? Jensen and Company specializes in locating, showing and selling local foreclosures, as well as short sells. Contact Jensen and Company for an up-to-date list of Park City foreclosures today.
