Unless you live under a rock you must know that foreclosed homes in Georgia are flooding the market right now. In fact, it is predicted that more homes will be in foreclosure in 2009 than in 2008 which means it will be a long time before this inventory will be depleted. Georgia, specifically the Atlanta Metro area has been hit hard by this foreclosure boom. So if you’re lucky enough to be in a position to purchase a home these days and take advantage of the lowest interest rates in years, you’re more than likely going to run across these foreclosed homes in your search. Since I’ve been listing and selling these properties for almost 5 years now I thought I would post a few things to watch out for when finding and making an offer on a foreclosed home.
Rule #1…. make sure you have a licensed Georgia Realtor that is knowledgeable about the process of selling bank owned homes. The paperwork alone on these deals can be mind numbing and you definitely want someone that knows what to look for. Most banks require their “addendums” or contract be signed along with or in addition to the original offer. These addendums override the original offer so having someone that knows how this works is very important.
Rule #2…. the stronger your offer, the better your chances of getting the home. As I said before the inventory is high but the homes that are priced the best for condition will sell very fast so you have to locate them fast and make a strong offer. Banks do not like to haggle back and forth. A lot of times there are multiple offers on the well priced homes so the best game plan is to make the strongest offer you can so the bank will put yours at the top of the list.
Rule #3…. Make sure you understand the terms. This goes back to the first rule of making sure you’re working with a knowledgeable Realtor with foreclosure experience. Every bank is different and they all handle their properties different. Be sure to read their addendums page by page and make sure the agreed to terms are included in those addendums because once you sign, it’s a contract!
Rule #4…. Remember the bank has no emotion in the sale of these homes. They are just files in the eyes of the asset manager or loss prevention agent handling it and they could care less about your situation. Sorry to be so blunt but it’s good to know this when making offers. Even more detached are the people at government agencies like Fannie Mae and HUD that have probably never even been to the town where the property is located.
Rule #5…. Be patient! There are some sellers that turn offers around fairly quickly but for the most part they take their time. When you’re dealing with an REO company, who is the “middle man” so to speak, they have to get approval from their client, the bank, on most offers. (Some can approve up to a certain amount) This takes time because then the bank has to get approval most of the time from their investor. This is just one example of how these transactions can take time. Each transaction is unique so plan accordingly. Patience my friend, patience!!
I hope this very short list of foreclosure buying tips has helped you understand the complexity of these transactions. This is just the tip of the iceberg so contact me if you want to learn more.
If you’ve ever considered purchasing one of these homes and had questions about the process or maybe you’ve heard it’s not worth the trouble let me dispel the myth. Don’t wait; this is the best Georgia Real Estate market in over 20 years so take advantage of the low interest rates and great bargains available.
Steve Rider REALTOR with Keller Williams Realty Lanier Partners Braselton Ga, selling homes in Winder, Braselton, Dacula, Lawrenceville, Buford, Grayson, Loganville, Monroe and surrounding areas of Barrow, Walton and Gwinnett County Georgia. Go to WWW.SteveRider-Realtor.com to see my featured listings or search for your new home.
If you're looking for a home in Northeast Georgia contact me either by clicking on the email link or call me toll free at 800-765-0460 or 404-663-7063 direct. I'm a life long resident of this area with life long knowledge of the market.
Gwinnett County Realtor-Tips on Buying a Foreclosure-What you should know before making an offer.
