10 Offers on 1 Foreclosure

Being a Realtor, the thing I hear constantly from prospective buyers is “I want to look at foreclosures.” Everybody seems to be looking for that foreclosed home that is at the perfect price and needs next to no updates to be a great, move-in ready home. Buying this home is easier said than done. People sometimes fail to realize that: 1) This home isn’t always easy to find and 2) buying a foreclosure is more involved than buying a move-in ready home, even with no renovations. Recently I was able to help a client find and buy such a house, but not without a few small hurdles of course.

 

I had been looking for a home with this particular client for several weeks. We had been in a lot of homes, narrowed down an area, and knew what we were looking for, we were just waiting for the house. One Thursday morning a great house came on the market in one of my favorite neighborhoods: Jefferson Park. The best part – it was priced approximately 40% below market value. The worst part – it was a foreclosure and we knew we had to act fast. My client was able to go by the house during lunch, and we submitted a full price offer that afternoon.

The next day we got a call from the listing agent, and there were 10 offers on the table! We discussed what we thought the house was worth and put together our highest and best offer. Sure enough, 48 hours later, we were under contract!

With foreclosures, the inspection is what can make or break the purchasing decision. Fortunately, this inspection came back great, except for one thing. We were unable to inspect the plumbing because the water had been turned off. After meeting the water company there not once but twice, (and getting water all over the kitchen floor both times due to a refrigerator valve that would not shut off) we got the plumbing inspected and everything came out great.

And because this client chose to use our recommended vendors for the inspection, mortgage, and closing- the rest of the process was smooth sailing. Today, they call that move-in ready foreclosure that they bought at a great price their home.

Buying a foreclosure isn’t nearly as easy as those infomercials make it sound, but with a little patience and guidance it is possible to navigate the process!

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