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Friday’s and Foreclosures

What you need to know about Foreclosures


Well it’s Friday and this post is about foreclosures.  I started writing about foreclosures two years ago and then added the searches below.  So now as foreclosures continue to be a big part of the market I think some clarification might help would be buyers of these properties.

First of all the foreclosures on the MLS are REO (Real Estate Owned) bank properties.  What that means is the property has already gone to foreclosure and the bank received a trustees deed from the sheriff at the court house steps. Then the property gets listed by an REO listing agent and is marketed as a “foreclosure”, seller type on the MLS.

Most buyers I speak with think they will get 50 cents on the dollar which is not true with properties that appear on the MLS.  You would have to go to the auction every month to find this kind of pricing.  Some properties are priced correctly and some are steals.  Many of the properties that have been sitting need a lot of work – including costly foundations.  It’s safe to say you will get anywhere from 10% to 30% off the list price on REO owned properties.

In my opinion, all foreclosures are harder to deal with and the banks are better than trying to negotiate with  the government (Fannie or Freddie).  The longer the home has been on the market, say 90 days the better chances of you scoring a better price, however with this comes multiple offers and we see the prices get bid up.  In this case, sometimes a foreclosure may not be your best value…

Shopping foreclosures are sad and you can feel the emotions in the home when you preview.  Sometimes there are holes in the walls, appliances and fixtures are taken.  On the high end foreclosures many are new homes that have never been lived in and are just way over leveraged.  It’s so nice when these properties are bought and new life is given to a once neglected or vacant home. It makes all seem right again.

If your a data freak like me – you can download the Q1 foreclosure report that includes the metro area – last link under monthly real estate indicators to the right. And if you’d like North Dallas, Park Cities and Uptown foreclosures check out Dallas Homes Center.  Tons of open houses this weekend too..

About Terry Smith

Passionate about real estate, positive problem solver, specialty boutique real estate brokerage that does things your way! A full-time Broker & REALTOR®, helping people buy and sell homes in the Dallas - Plano area. Whether you're a buyer just starting out or someone with luxury properties to sell. I have extensive knowledge and experience to help you with your real estate transaction. I am a native Dallasite. Have questions? Ask me. You can find me on Google+ and Pinterest.

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