Foreclosures - Such a DEAL! . . . Maybe It Really Isn't

Reblogger Lyn Sims
Real Estate Agent with RE/MAX Suburban - Schaumburg IL Real Estate - Northwest Suburbs of Chicago

Ahhh the lure of foreclosures!  To some buyers it's like the smell of hamburgers on the grill when you've foreclosures,buyers agent,been stranded on a desert island!  They gravitate towards 'the deal' (not the Donald).  It's like Homer Simpson and his 'donuts' mantra, they just can't help themselves.

This post is from a successful buyers agent, Carla Muss-Jacobs from Portland, and what she finds when she shows foreclosures to overly eager buyers.  You better know what your 'in for' and go in with both eyes open!  In fact, get as many eyes as possible to help you out (inspectors, contractors, etc) if this is your first home. 

As a buyers agent, I'll show you all homes available in your price range.  But you better have your financing, a mentor or contractor for advice and a good sense of humor if you want to take on a foreclosure!  Cause after the closing YOYO babe!

Enjoy this post!

Original content by Carla Muss-Jacobs, Principal Broker/Owner Licensed State of Oregon

This blog was inspired by Charles Buell's The Perfect Storm 

I started thinking about this, and realized how amazed I am that some short sales, but mainly foreclosures are coveted by Buyers

Why?

Because Buyers think that a Foreclosure, mainly, is a great bargain.  The lure of getting something for nothing, or a lot of house for a little buck.

Sometimes that's the case.  Most times, it's not.

The main thing to consider when you are representing a Buyer, or are a Buyer, is condition.  The condition of foreclosure property might be in dire straights -- a tear down -- or, it might need some sweat equity.

Rarely, and I mean rarely have the foreclosed homes I've toured been move-in ready.

If you're a Buyer, or representing a Buyer who is interested in Foreclosures, try to be realistic.

  • Do you have the funds to fix the place up?
  • Is the property going to fund?
  • Is the property going to be a money pit with unforeseen headaches (Netflix "The Money Pit")
  • Will the money you put in to it pencil out in the long-run?
  • Do you have the time and INCLINATION to make updates?
  • REPEAT:  Do you have the FUNDS to fix the place up?

I toured a Foreclosure on Sunday.  It had gone PENDING, but was back on the market.  I took my clients out to see it.  From the photos it looked fine.  Upon closer inspection:  the roof needed replacing, the garage door was dry rotted, the rain gutters were rusted (leaked), the flooring needed to be replaced, there were no appliances, and the siding (which the listing agent noted as "OTHER") might have been LP . . . the kiss of death in our local area. 

This might have seemed like SUCH a DEAL on paper.   It required a lot to make it move-in ready and that = MONEY!!

Looked GREAT in the photos!  A lot do. 

I hope the Buyers didn't waste spend money on a home inspection.  Maybe what Charles is blogging about happened?  And that would have been a shame!  A good, experienced agent -- such as YOURS TRULY --  would have pointed out the issues, prior to writing an offer.  Perhaps, saving the Buyers $300 to find out the OBVIOUS!! 

Keep in mind, Foreclosures are sold "AS IS" in most cases.  And "AS IS / WHERE IS" aka:  What you SEE . . . IS what you get!"

And most Foreclosures are: YOYO (You're On Your Own!)

 -----------------------------------------------------------

Representing Buyers Since 1999 ~

Carla Muss-Jacobs, ABR, CEBA, e-PRO, Realtor®

Principal Broker/Owner
EBAPortland, LLC
YOUR Exclusive Buyer's Agent

CHECK OUT www.EBAPortland.com for Home Buyer TIPS! 

Read My Blogs:   

All rights reserved (c)

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Anonymous
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Very interesting Lyn.  Thanks for sharing your thoughts on this...

January 29, 2010 10:35 AM #1
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Tammie White
Benchmark Realty, LLC (615) 495-0752 or www.TWRealtyGroup.net - Franklin, TN
TW Realty Group, Franklin TN, South of Nashville

Lyn, I'm originally from Bartlett IL--nice to meet you.  You offer good advice to buyers looking for a foreclosure.  Good re-blog.

January 29, 2010 10:37 AM #2
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Jeff Belonger
Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ
The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

Lyn... this is an excellent reblog and you added some very valuable advise in your introduction. Thanks for sharing this since I missed it the first time. Lenn Harley just posted something about short sales, that this post could be connected to... thanks

jeff belonger

January 29, 2010 10:43 AM #3
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Lyn Sims
RE/MAX Suburban - Schaumburg IL Real Estate - Northwest Suburbs of Chicago - Schaumburg, IL
Schaumburg Homes

Jeff:  I'll pop over & see what the learned Lenn has to say.

Tammie:  Used to live in Bartlett with the Blog Dog!  Carla should get the credit.

 

January 29, 2010 10:50 AM #4
Rainmaker
1,326,314
Vickie Nagy
Vickie Nagy, Broker Associate Realty ONE Group BMC Associates | BRE#01363932 - San Ramon, CA
Broker for San Ramon, Danville, Dublin, Pleasanton

I love the reference to the 'Money Pit'. I rememver Kirsten on one of the HGTV shows telling flippers 'Don't you open that wall. If you open that wall no telling what you'll find and you'll have a whole new set of disclosures to deal with.' They did open that wall...and they wish they hadn't.

January 29, 2010 10:57 AM #5
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Carla Muss-Jacobs, Principal Broker/Owner
BuyersAgentPortland.com | (503) 810-7192 Portland Metro Exclusive Buyers Agent | 100% Buyer Representation ~ 100% o... - Portland, OR
Buyer Focused ~ Buyer Results

"D'OH . . . " Homer Simpson

January 29, 2010 11:21 AM #6
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Lyn Sims
RE/MAX Suburban - Schaumburg IL Real Estate - Northwest Suburbs of Chicago - Schaumburg, IL
Schaumburg Homes

Carla:  Great job on the post.  Thanks for the reblog.

Vickie:  Yep, there could be secrets in them thar walls!

January 29, 2010 12:27 PM #7
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Rainmaker
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Lyn Sims

Schaumburg Homes
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