Foreclosure Buyer Expectations

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Managing Foreclosure Buyer Expectations

1. Sales are “as is.”
Illinois real estate professionals who work with buyers of distressed properties say the homes are often sold “as is” even if an inspection is performed. Buyers should expect issues with the home because the properties have been vacant. Some homes may not have appliances or even the mechanicals left in tact.

2. Inspections are important.
Get a home inspection to know what to expect related to repairs and renovations of the property. Take the time to get the facts before making an offer and factor in the costs for needed repairs.

3. Know the available inventory.
Consider the MLS, www.HUD.gov and the local courthouse as sources for properties going into foreclosure. You can help buyers whittle down their choices by giving a realistic picture of what inventory is available.

4. Don’t expect bargain-basement prices.
Even though homes in foreclosure have reduced prices, banks know the comparables. Paying cash is a method for some, but most buyers will use conventional financing and this may take more time to close. Consider the home’s potential investment value for possible rental income.

5. Expect delays.
Bottom line, agents working in the foreclosure market can expect more paperwork, more phone calls and more hand-holding than the average sale.

- Based on “Helping Buyers Navigate Foreclosures,” Illinois REALTOR® Magazine, www.illinoisrealtor.org

Whether you’re working directly with asset managers, with first-time homebuyers or with seasoned investors, successful navigation of the distressed housing market takes knowledge, experience and patience.