Looking for a foreclosure, bank-owned or short sale but need to be able to live in the home immediately after closing?
Good news is that foreclosures are no longer always trashed, fixer-uppers. Today's foreclosures can be simply AWESOME! This economy has forced builders and responsible homeowners alike to let amazing properties go back to the bank. Many are still in very good condition. Some still may require a bit of cleanup or a few cosmetic changes but there are many homes that you can move right into too!
Here are a few of the treasures I noted on the Twin Cities MLS in Anoka County this weekend:
- New Construction Foreclosure on Coon Lake! 60ft of shoreline and brandnew 4BR/2BA on north side of Coon Lake in East Bethel. Builder listed at $600K;bank priced ½ off at $299K.
- East Bethel Acreage with underground sprinklers, master suite and 4BR on one level. 4BR/3BA with 3 car built in 2001 and EXTRA garage sold for $393K just listed this weekend by bank for $222K!
- Bank-owned New Construction 5BR/4BA Rambler in Ham Lake. Executive home with 5 car attached garage. Tax valued at $589K bank asking $499K includes heated garage, wet bar, landscaping!
- 3BR/2BA/3Car 2004 built splitlevel on 3 acres in Burns Township. Just listed this weekend for $139K. Originally sold in 2004 for $265K.
- Modified 2 story 3BR/2BA/3 Car on 1/4 ac in St. Francis. Just listed this weekend for $169,900 by bank. Anoka County tax value $219K--$50,000 higher than asking!
- Brand NEW Andover One-Story Twin Home! 2BR/2BA/3Car with master suite. Builder priced at $265K...Bank asking $150,000!
If you are in the market for a great deal on a foreclosed home, time to get organized because the rules to buy are a bit different than when working with a traditional seller.
Seven Tips for homebuyers considering a foreclosed home:
- Banks LOVE clean offers. Buyers MUST be preapproved with credit checked and employment and funds verified. Documentation must accompany the offer or it won't be considered.
- Banks reject lowball offers...often with no negotiation. They are a business and know the value of the asset they are selling.
- Well priced foreclosed homes get multiple offers. Serious buyers put in their best bid first.
- Banks sell homes AS-IS. What you see is what you get. Buyers must be prepared to make all necessary repairs out of their own pocket after closing.
- Banks will not pay for inspections in most cases. This includes the septic system and/or well. Be prepared as all inspections could end up being the buyer's responsibility. If you chose to inspect the septic or the county requires a septic compliance test, expect to pay $400-$500 for this inspection. A well test will run around $150. A whole house inspection is $350-$500.
- Personal property is not included as part of the sale. So if the appliances are at the home when you close, they are a bonus. The bank will not remove. But they don't guarantee will remain at the home or that they are in working order. This means if someone breaks in the home prior to the closing and takes them, the bank will not replace.
- Having your own REALTOR® to represent your interests is essential. The listing agent is under contract to represent the bank. In many cases, the bank will not allow a dual agency so if a buyer contacts the listing agent to write the offer, the buyer does not have representation. This means all of your information goes to the bank...the listing agent is required to tell the bank everything that you say about your financing and the amount you are able or willing to pay. But the agent is not required to tell you anything in return. The agent works only for the bank.
Are YOU ready to get a GREAT DEAL on a foreclosed home? Let me be YOUR professional REALTOR®! If you are buying, selling or relocating to Minnesota and need help from a professional REALTOR®, give me a call or visit my website for a FREE Relocation Packet, Homebuyers Success Packet or sign up for Listingbook Twin Cities Home Search. I specialize in acreage and lakeshore properties in the north and east Twin Cities metro area including Ham Lake, Lino Lakes and all communities in the Forest Lake School District! Serving Anoka, Chisago, Ramsey and Washington Counties in Minnesota..JPG)
Buying a Home? Check out my new HOME BUYER'S BLOG!
Copyright 2009 Teri Eckholm http://www.terieckholm.com/
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If you are buying, selling or relocating to Minnesota and need help from a professional REALTOR®, give me a call or visit my website for a FREE Relocation Packet or FREE Homebuyers Success Packet. I specialize in acreage and lakeshore properties in the north and east Twin Cities metro area including Ham Lake, Lino Lakes and all communities in the Forest Lake School District! Serving Anoka, Chisago, Ramsey and Washington Counties in Minnesota.
Buying a Home? Check out my HOME BUYER'S BLOG!
Copyright 2012 Teri Eckholm http://www.terieckholm.com/
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LIKE MY BLOG? Subscribe, Follow or Like...It's your choice!
Thanks for sharing this lovely place to live. Love looking at homes in different marketplaces.
You are right some foreclosures are trashed and some aren't. Just depends on the day and the house.
We are even seeing some banks do some basic painting and cleaning to sell the homes quicker and for higher prices.
Teri, It sounds like you have some wonderful buys right now. I know that some foreclosures are wonderful homes--not what you used to find. You posted some very helpful information.
Hi Teri, What is the employment issue prevailing right now in MN. I wonder if the next round of foreclosures will have a more negative effect than the previous one. These values are extraordinary. I can't wait till these foreclosures finally come to an end and we return to more normal times.
Harry--There are many wonderfully priced homes in Minnesota...Thanks for stopping by.
Russ--My buyers have found some awesome deals in this market....some were a bit more work than others...some were move-in perfect!
Terry and Bonnie--That does happen here too. In some cases, I have seen carpeting and other concessions but for the most part banks really mean AS-IS when they put the home on the market. If multiple offers are expected, the cleaner your offer can be, the better.
Carole--Thanks! The market has really changed so there are opportunities where you never expected to find them. :)
William--Good question! Our unemployment is similar to what you have seen across the country. I know that many of the so called "good" jobs are being relocated out of the state as well as going offshore where there are better tax advantages. I also have concerns about a second wave of higher valued foreclosures as those dual income families that are dealing with the reality of unemployment start handing the keys back to the bank. I am cautiously optimistic that we have turned a corner in the Twin Cities real estate market but not naive enough to think it is all over.