Foreclosure Property in Mount Prospect
More and more foreclosure/bank-owned properties are available on the real estate market. My real estate team is listing some and so are so many other real estate agents and then there are the real estate auctions. Purchasing a Bank-owned/foreclosure propertycan be a great opportunity but is typically reserved for those not faint of heart. There are many things to look out for and alot of homework to do for any foreclosure or bank-owned purchase. Using the services of a great real estate agent that is well educated and experienced in the short sale and foreclosure process would be very beneficial to you.
Investors today are taking advantage of this great market to buy real estate, anyone else that can right now is in a great position.
The prices of bank-owned properties is typically much lower than market value and usually the more work that needs to be done the cheaper the price. There are some bank-owned properties that are in great condition and are usually priced accordingly.
The bank/investor has not ever lived in the property and is probably not located in the same state as the foreclosure property. They are number driven, it is all about the bottom line for them. Low offers on REO listings in my experience have not gone through. The bank/investor will reduce the price as it sits without an offer but coming down has not been the case with offers.
Most foreclosure listings require offers of cash or FHA203k financing only. Unless the property for sale is in good condition and will qualify for conventional financing. Cash is king as the bank/investor know they can close quickly and get it off their books.
In Northern Illinois where I live (until I move somewhere warm), the properties need to be winterized. The properties are sold as is and the buyer does not know when the winterization occured. It may have been after the pipes froze, or it might not have been done properly. There is always a risk of damaged pipes, heating system or mold. The foreclosure/bank-owned properties can be inspected with the water and gas turned back on but the buyer is running a risk of more damage to the plumbing, heating or gas items.
Another thing to think about is do you have somewhere else to live until the property you purchased is repaired or will you be homeless in the interim? Sometimes the more you repair the more you find and so on and so on……
Having a home inspection completed on the foreclosure or bank-owned home you are thinking of purchasing is a great idea and in most cases you can back out of the contract if necessary. Get estimates of the repairs from at least 2 sources on the cost. Your realtor will be able to tell you what the approximate value would be after repairs.
If you have any questions or after taking all this into consideration, and you are still looking for a foreclosure bank-owned REO property, contact me and I would be very happy to help you find your diamond in the rough 🙂
Posted By: Julie Anne – The Julie Anne Real Estate Team at Keller Williams Success Realty
CDPE Certified for Short Sales and REO
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