What’s the best way to get an awesome deal when buying a home?

I am getting ready to make a buying decision for mid next year for a home. I’ve heard of bank owned homes, foreclosures, auctions and what not but I want to make sure I cut as many middle people as I can and get the most for my money, any suggestions or information is greatly appreciated.

By | 2013-08-27T13:20:38+00:00 August 27th, 2013|Mortgages Home Loans Interest Rate|5 Comments

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5 Comments

  1. Traverse City Agent August 27, 2013 at 4:22 PM - Reply

    The only middle man would be a realtor. As the buyer, there is no cost to you for having a realtor represent your interests. Any home that is listed the seller is already paying this fee.

    By not working with a realtor, you expose yourself to risk. The biggest risks usually are associated with the kinds of transactions you’re interested in.

    The thing you need to be careful of is making a decision without enough information. For instance, buying a foreclosure to find out that it takes a lot of time and energy to negotiate with the bank and after getting the negotiating done to learn you cannot get a mortgage because of the condition of the home.

    By contrast clients that work with me can locate properties that will both be a great investment and will be as painless and risk free as possible.

    Lastly, if you are really interested in a bargain, you might want to buy now. We expect most of the market is going to right itself next year. That means sellers will be less cooperative and motivated.

  2. Terry S August 27, 2013 at 4:12 PM - Reply

    The best way to get a deal is to look for a home that has been on the market for AT LEAST A YEAR.

    Have your Realtor check tax records to see what they paid.

    The pre-foreclosure, short sales, auctions, in my experience have NOT been the great deal they are made out to be.

    You also don’t get exactly what you want, but have to settle for what’s being offered.

    Here’s the details of my last deal.

    My buyer’s looked every saturday for 3 months.

    Here what happened.

    The first home we wrote an offer on the people owed too much on the home and the deal was rejected.

    The second offer was a bank repo. Since the home had been on the market less than 30 days the bank countered at full price.

    The 3rd offer was a bank repo, again countered at full price.

    The 4th offer was a home that had been on the market for 16 months. Deal after deal had fallen apart and the seller was getting tierd of dealing with it.

    The seller had moved to Texas, the home was vacant for over a year.

    The asking price started at $399,000.

    My buyer’s offered $340,000 the seller countered at $352,000.

    The fact that the seller bought the home for $186,000 10 years earlier had a lot to do with getting the deal closed.

    Had the seller taken a second, then a 3rd, then a home equity line of credit and pulled all the equity out, the deal would have never closed.

    Hope this helps.

    Terry S.

    http://www.Welcome2Arizona.com

  3. frankie b August 27, 2013 at 3:12 PM - Reply

    The best way to get a good deal is to educate yourself on the market trends and prices in your area. You have time because you do not plan to buy for a while. If you do this you will learn what property values are in your area, and you will recognize a bargain when you see one. Also be prepared to move fast because there will be several bids on a good deal.

  4. Frank August 27, 2013 at 2:34 PM - Reply

    One good way is to get a fixer upper and another way is to get a foreclosed home. Probably the best way is to combine these. When a bank forecloses, like on subprime financing, they may have 90% of the value invested in it and therefore they will want close to that. Tax foreclosures could just have 10% of the value outstanding and therefore could have much lower reserve prices. Look at county postings for homes to be sold on the steps of the courthouse. There might be some real sleepers in there like a tax foreclosured home in a nice area that can be bought far below the appraised value because it needs some TLC. You could do some of the work and hire contractors and still save a bundle on a home that you would have wanted to remodel anyway.

  5. Maryn Bittner August 27, 2013 at 2:02 PM - Reply

    Where I live, the best deals are fixer-uppers that need a *lot* of attention, and not the kind the weekend DIY-er can give. If you are able to defer living in the place while you pay the pros to do the work it needs, you can get real bargains on wonderful older homes in nice neighborhoods.

    Often they were the homes of elderly people who were not able to do any maintenance at all for many years, so broken things stayed that way and sometimes got worse. They have original kitchens and bathrooms from the WWII era which need to be gutted and started over, and often the electrical system is in poor shape, unable to handle modern loads.

    But when a house like this sells for half the cost of its updated neighbors, it’s sure worth thinking about.

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