Florida Buyer Broker
There are obstacles when it comes to buying foreclosures.
Many foreclosures are still priced too high for Florida primary and second home buyers to purchase. The price of foreclosures may seem low at first. However, the fees for condominium, HOA, taxes and insurance may be economically disproportionate to the economic ability of the buyer.
Buyers view foreclosures on line, however, photos can be deceiving. While looking on line you can’t smell Chinese drywall, mold, pet odors or nicotine. When there are no photos of the back yard, verticals and window coverings are pulled closed, there is usually a reason. There could be 4 or more air conditioning units outside the master bedroom window or next to the screen porch!
Smart buyers do NOT purchase a property sight unseen.
Conversations with the seller’s agent or builders can put pressure on buyers to make offers sight unseen. This often a mistake buyers make.
Most foreclosures are in serious need of repair. Banks may paint often to cover up mold, make minor repairs, deodorize or replace carpet in a property. Buyers beware of this tactic as a cover up for Chinese Drywall or mold odors. Owners really do this too, please read the link Chinese Drywall.
Most foreclosures need considerable work or renovation.
There is usually something wrong with a foreclosure which causes it to be unsaleable thru a traditional sale. Delinquent owners may abandon a property. In Florida mold grows quickly in abandon homes.
Foreclosure properties sit vacant a long time in Florida. It takes about 2 years for a financial institution to foreclose on a property in Florida. Resentful owners will pour concrete in plumbing lines, knock holes in drywall, pull cabinets off walls and take all the appliances.
Timing issues are a challenge for out of town buyers.
Listing agents often under price short sales and foreclosures at low prices to cause bidding wars.
Timing issues with offers is just one of the challenges for most buyers. It could then take 2 to 10 days to find out if an offer is accepted. There may or may not be a call for highest and best price from buyers in a bidding war. The buyers need to be careful they don’t end up bidding against themselves!
Foreclosures often have title issues.
Foreclosure issues range from property owners being inappropriately foreclosed, title issues and lack of material facts pertaining to property condition disclosures.
It is possible foreclosures will have delinquent fees or special assessments owed to associations which become the responsibility of the new owner. Fannie Mae is doing “spot approvals,” on properties they own in condominium complexes which have too many investors or owners delinquent on their condominium fees.
Some institutions include redemption clauses with waiting a period before the new buyer gets the deed.
Buyers may be required to qualify using the foreclosure institutions financing.
Government backed loans like FHA or conventional banks will not provide financing on some foreclosure properties until the homeowners’ association and investor ratios meet the required guidelines for financing. The buyer must finance with Fannie Mae or pay cash for one of these properties.
Bids are often taken on line from buyers who end up in a frustrating numerical automated system every time they have a question or concern.
The banks and financial institutions are ruthless.
The banks are ruthless when it comes to these transactions and protecting their pocketbook! Banks addendums are typically 15 to 20 pages of documents which have sharks teeth and can seriously impact the buyer.
Buyers are not usually given enough time for an attorney to review the contract and addendums. The signed paperwork must be returned quickly to the asset manger to stay within the terms of the contract.
There is not always a realistic home inspection period. Buyers are expected to purchase based upon their own inspections prior to making an offer.
There is not just one real estate company which list foreclosure properties.
All real estate brokers and agents have access to foreclosure properties. Any agent can create lists of foreclosure properties for buyers and in any price range.
If you are in the market for a home, be realistic, do not expect to buy a home that is in good repair for the same price as a foreclosed property. And do not expect to buy a “short sale,” without long delays and broken promises.
If you want to contracted to purchase a property on your trip to Florida don’t put all your hopes into one long drawn out foreclosure transaction. You may be out bid by another buyer while waiting on a response from the financial institution.
“The most important thing a buyer can do is first of all work with a buyer broker.”
As stated by AARP and the Consumer Federation of America in REALTOR® NEWS
Florida Buyer Broker is licensed to sell real estate in Florida, USA.
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Beverly Howe, buyer broker relationship with buyers is always Single Agency representing buyer’s only. Her buyer clients receive undivided loyalty throughout the real estate transaction. See Fiduciary Duties required by Florida Law and Brokerage Relationships , Buyer Agent Disclosure for more information.
Sellers listing agents have confidence in buyers who obtain the professional services of Florida Buyer Broker.
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