First of all a seller can do what ever a seller wants to as long as he abides by the fair housing laws. If the contract clearly stated that the counter must be responded to by 5 pm and another offer came in, then seller can accept it. If the seller's agent was working in the best interest of the seller, he should have called your agent to let her know that there was another offer and given you the opportunity to improve your offer (if you so wished). Maybe they thought that 2nd offer was adequate and were happy to accept it. Your agent should have called the listing agent and told them that your offer couldn't be signed by 5 pm and asked for an extension.
You should be looking at all available homes in your price range as many of the foreclosed homes may not be be mortgageable. If not mortgageable, you most likely will qualify for a 203K rehabilitation loan. This loan allows for you to make the necessary repairs. You will need to qualify for not only the price of the house, but the estimated repairs too.
You should make appointments with 2 or 3 different local real estate brokers. They will give you a value on your home so that you have an idea of the equity that you will receive from your sale. Then you need to talk with a loan originator so that you may determine what you qualify for with the money you will have as a down payment. Then the agent you select to work with, will provide not only the services for your sale, but can also let you know what properties are available in your price range so that you can determine if the move you are looking for is attainable. If after doing these things and it looks as if you can move into a "newer" home, you list your house and either negotiate for a longer closer period which provides you an adequate amount of time to find your new home, or tell the buyer it is subject to finding suitable housing with a time limit on your selection time frame. The first option is the best as many buyers will not waiting around to see if you can find a house.
The obvious pro is that the seller is not paying a real estate commission, therefore he may sell to you for less than if it was listed with a broker in the MLS. However, market value is market value and he can sell the house for that value. It is a proven statistic that for sale by owners sell their homes for 12% less than the market value because they lack experienced advise from an agent on what the actual value of their home is. On the flip side, if you do not use an agent to buy a for sale by owner home, you run the risk of paying much more than the house is worth, due to not knowing true market value of the home, or the experience to acknowledge the condition of the home and possible repairs that will be needed on the home. Lastly, many for sale by owner transactions fall apart before closing because the parties lack the knowledge of how to get the transaction closed.
If it is listed in the MLS (most likely it will be a short sale), then yes. If it truly is a pre-foreclosure, the bank or institution foreclosing on the property will not offer it for sale until it is given to a broker to do so.
The first step is to see if you qualify for a mortgage, assuming you do, the second step is to find a experience real estate agent to assist you. A typical real estate closing requires approximately 10% of the purchase price in cash to close depending on the state you are in. You can ask the seller to help with some of these closing costs. Good luck.
Hi Sunnyview - Your agent has a fiduciary dutiy to put your needs and concerns above all others including himself. If you wants to represent you, he should be doing exactly that. If the sellers are not paying the commission that he expects to earn, than it is up to him to have this discussion with you and ask you if you will pay it. If he doesn't like your answer, then he should suggest that you find another agent to represent you. That's it and there shouldn't be drama. If he isn't capable of negotiating his commission with you or the seller,perhaps you should get a stronger agent/negotiator to handle you real estate transaction.
I think your mind is made up and you know what the right thing for you to do is! Check with a local agent to find out what expected appreciation will be on the home and if it doesn't make financial sense to stay than sell - turn the page and move on.
If you buy a foreclosed home, you need to make sure the cost to repair the home plus the cost of the purchase is not more than the current value of the home in restored condition. The upside of this is that many components of the home will be new with your choice of finishings. The downside is that it involves work, estimating, hiring contractors, etc. Keep in mind that the end costs of the project may likely be more than the original estimate because as you get involved in the project, quite often new required repairs pop up.
Depends, if you are the buyer, your loan originator should provide you a closing worksheet with a breakdown of all costs to close which are made up of 1st years taxes (this differs state to state), one year of homeowners insurance, the banks closing costs, down payment, and recording fees. You may have also have attorney fees. If you are a seller, the closing costs vary state to state and could be a combination of the following, updated search and survey, transfer tax, attorney, and commission.