Tuesday, January 6, 2009
How do I take advantage of the housing market?
What are some resources for locating low priced housing? Where are the bargains in times like these? Foreclosures? Do they list forclosed property?
If there are any investors or realty savvy folks out there that can help a young buck get my foot in the door I would appreciate it!
I am not an agent, but I own a couple of houses. If you know where you want to live (neighborhood) for the next couple of years, then now is a good time to look, because you may find a nice place very reasonably priced due to falling values and someone's need to sell NOW.
On the other hand it is likely that prices may dip lower so if you just want to buy and then sell for a profit (flipping) that market would be very dicey because so few properties are selling quickly.
If you want a house (townhouse, condo, etc) to live in, then start looking with an experienced agent that knows the area that you like. Agents work for "free" until they close a deal, then get a commission based usually on a % of sale price.
Talk to a mortgage broker about the realities of what kind of financing you can qualify for, then start looking with an eye toward monthly payment vs. monthly rental income. Keep in mind rental income will also need to cover insurance, property taxes and maintenance.
Depending on your area, prices may still be falling due to increasing foreclosures. Don't be in a hurry to buy. Take your time and only strike when the opportunity is right.
The best source of information about houses for sale is called Home Buyers Scouting Report. It gives you all the homes for sale by all real estate companies. All important information is always included: addresses, prices, details, and photos. Only those properties that match your criteria are included. Forclosures, distress sales, fixer uppers, short sales and everything else is included.
With excellent information you are ready to find the bargain you are looking for. If someone made a list of bargains for you, most likely there would be some reason why none of them were right for you. You can become expert enough about the kind of home you are seeking to recognize a bargain. That is what smart buyers do.
Here is how to get started. Go to my website, www.TerryFortier.com and click on the button labeled Home Buyers Scouting Report. You may need to scroll down just a little when you get to my home page to see that button on the left side of my picture. That link will let you input your information and request that a local REALTOR and loan officer contact you. (Be sure to uncheck the default boxes asking me and my partner loan officer to contact you. Local help is best but we are in central Washington State.)
The Home Buyers Scouting Report service provides the best information available anywhere online and there is NO COST and no obligation. Most real estate agents do not realize the value of this system and those who do offer it will usually be experienced, top quality professionals.
There are different categories of foreclosures. Bank-owned properties, known as "REOs" are often listed in the MLS (multiple listing service.). They are post--foreclosure properties that are now owned by banks. Some banks own a lot of these and often desperate to sell. This might be the best route for you.
You can also buy homes at sherrifs sales, that have gone through the foreclosure process but have not yet been bought back by the bank. There you would bid on the property at auction, but you typically wouldn't be able to see the property before hand. It's kind of risky, and there are so many REOs available that you can tour that I find it's a better way to do it..
There are also "pre-foreclosures" where a seller is in default on their loan and is desperate to sell their house before they go into foreclosure. I've never bought one of these.. they're mostly bought up by the "We buy ugly houses" type of investors.
Like I said, sounds like you're a good candidate for buying an REO. There are Real Estate agencies that specialize in selling them. In the midwest, I know who they are and could help you. Don't know if you live around here. So.. e-mail me if you want.
Edit: Also; keep in mind these properties are often in need of repair! If you buy a house in good condition you will not be getting nearly as much of a discount. But any house bought for a good value today could be a good long term investment.
Also, to find unlisted properties that are in or near foreclosure, there are lots of Web sites that charge a fee for compiling public records on that.. the most famous one is realtytrac.com. You can also go to your local housing court and periodically request the records... but they often charge a fee of a few cents per page for printing costs.
Click on the advanced search option and input the info for the location and what you are looking for. This will show you what is available and what are the asking prices. Offer less than the asking price and see if you can reach agreement with the seller.
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Posted by smith |