Pre-foreclosure purchase, help please.

Sorry forgot to add, Do I need  a buyers' agent or can I use an attorney to check all the debts, legal info etc. prior to making an offer. Any replies much appreciated.

regards

Jaz

While I can't tell you what to offer, my suggestion is to do a little more homework (or have a Realtor do that for you). You need to know the comps of the area to know what it is really worth today. Knowing what homes are selling for within a 1/2 mile (no more than a mile) radius, will really give you a better understanding of what you should offer. Buying cash with no contingencies will give you more negotiation power. They are more likely to take your low offer seriously with that power behind you. You do not have to use an agent, but it can't hurt. If this home is listed on the MLS, I would consider contacting a Realtor in that area to negotiate the sale for you. However, you should also consult and attorney if you have any questions or concerns. I hope that helps a little.

Prices are definately going down lower if you wait. And I dont see why you need a realtor if you have a real estate attorney... you do need a good inspecor .

Lisa

My first advice to you is to find out what the current comps are in the neighborhood. A comp from almost 2 years ago unfortunately does absolutely nothing for you as far as value. If the property is listed at $280,000 and the current comps are in the $250’s for example, that will help you make an educated decision on what to offer and whether you even want to pursue that particular property. Just because it’s in the foreclosure stages, don’t automatically assume it’s going to be a good deal.

I’m an agent from Las Vegas, NV and from my experience in my market, banks here are accepting offers up to 10% below list, sometimes a little more and sometimes a little less depending on their motivation and how much of a loss they are taking. If the property has more than 1 mortgage tied to it, then you have less breathing room to negotiate as the second mortgage 99.9% of the time is already taking a loss and they want to salvage as much of their money as they can.

As far as when to buy, here’s my advice as to how to look at it when purchasing property. In 2008, you have the opportunity to buy homes at 2002 market prices (depending on the market, but it’s pretty accurate anywhere you go in the states). In today’s market, the best opportunities are when you find them! There is no time frame attached as to when. If you try to do that, you let good investment opportunities pass you by.

2002 prices?  Yikes, I am sure glad I don't live in Vegas!  Around here, we are at 2004-2005 prices.