Foreclosure
Definition of a Foreclosure - The legal process by which an owner's right to a property is terminated, usually due to default. Typically involves a forced sale of the property at public auction, with the proceeds being applied to the mortgage debt.
Buying a foreclosure in today's real estate market is not that easy and without the experience of a broker you may not be successful. Most homes (9 out of 10) foreclosures will need work and will not be perfect per a inspection report. There will be hidden things that you will not see and all foreclosure properties are sold AS IS WHERE IS. All foreclosure will be priced lower compared to others in neighborhood in most cases. The price is set to attract the savvy buyer to view the home and you won't be the only bidder.
It is not the house you want the discount on, its the neighborhood over all pricing you want the discount. Change your mind set and place a smart fair offer on a bank owned home"
~ Broker David Pannell ~
A smart bid on any foreclosure is at 92-85% of the comparable value determined from recent sales, condition, popularity (showings) and days on the market. You will need a Broker for this information. Banks are not in the business of keeping inventory or losing money. The bank has a scale and it is not based off what a buyer wants; wear an tear, or simple fixes to reduce the price. The bank will wait for a buyer to offer 92-83% appraised value depending on recent sales, condition, popularity (showings), and days on market. They normally pay appraisers, BPO-broker priced opinions to know what they need as their net amount or loss percentage. They can lose 15-20% off comparables and still recover their loss by mortgage insurance programs, bailouts, and grants. This is the game, and you need our help to make a smart buy with any home.
David Pannell is a real estate broker serving north Ft Worth Tx, Saginaw TX, Keller Texas, Colleyville Texas and Haslet Tx homes for sale. The buyer in this video purchased a home built in 2004, far less than any other buyer in the neighborhood in the last six months. The NEW home builder is currently selling a new inventory homes for $180-220,000. It is your advantage to look at the foreclosure homes before looking at the NEW homes. It just makes sense.