Buying a Foreclosure in Parkland

Over the past few years, the struggling economy has brought distressed properties (ie, foreclosures/REOs and short sales) into the forefront of the real estate market.  While this is bad news for the people who have lost their homes, it offers an affordable opportunity for first time home buyers and investors.  Buying a foreclosure in Parkland differs from traditional Parkland home sales in many ways.

Foreclosures are homes that were taken back by the mortgage company due to the inability of the homeowner to pay their note.  When you purchase a Parkland foreclosure, you are buying it "as is".  What you see really is what you get.  You are responsible for any repairs necessary after you take ownership.

The first step you need to take on the road to buying a foreclosure in Parkland is to find someone who has experience with foreclosures in the area.  Banks tend to stick with only a few select REALTORS® to handle their REOs (Real Estate Owned properties).  Hiring an agent with this knowledge can get you information on not only what is currently for sale but may even help you get an inside look at what is ready to hit the market before it even gets listed.

Since many buyers may be interested in the same Parkland foreclosure at one time, it is important to get your financing in order before you buy.  Unless you can purchase the home entirely with cash, you will need a preapproval letter.  A bank is more likely to take an offer seriously from someone with a preapproval letter in hand than someone who is waiting to find the house before they start the loan process.  Also, don't make the mistake of thinking that the bank selling the home will be the one financing your loan.  In the bank's eyes, they are the "seller" of the property, which is a separate transaction completely from being the loan company.

When you find a Parkland foreclosure you are interested in, have your REALTOR® pull the comps for the neighborhood.  Comps are the comparable sales figures of homes sold recently in the area.  This will help you and your REALTOR® determine a fair offer to place.  Part of the comps should include how long it is taking for a home in your price range to sell in that area.  If you're looking at a property that typically sells within a few days, you want to go in with your best offer first.  However, if the Parkland property you're interested in is the type of home that tends to sit on the market for a while, you may have a little wiggle room to negotiate.  Ask your REALTOR® for their advice on the subject.

When buying a foreclosure in Parkland, remember to be patient.  It takes a bit of skill and knowledge to negotiate a deal.  Finding the right REALTOR®, getting your preapproval letter and doing a bit of investigation into the local real estate market will help you become a proud owner of a Parkland home in no time.  Let me know when you're ready to start!