

Anyone have success buying in the foreclosed home market? - niels_olson

My first homebuying experience was a bit odd (three generations of a friend's family, complete with general contractors and real estate agents, all sat around laptops one night while we fed them beer and pizza until they found the best houses for us).<p>This time . . . not so lucky. What sites to use? What are the key variables? I've mapped my new workplace and the best schools in the area. I know the general info about my area. I lived in the same city for six months about 8 years ago and I have friends in the area and I have a 10% down payment. The question is, today, what's the best way to buy the best house cheap?<p>Foreclosures obviously come to mind, but after trying Zillow and Foreclosures.com and foreclosure.com, this is clearly not a market I'm familiar with. This Boston Globe article provides minimal insight (http://www.boston.com/business/personalfinance/articles/2008/12/19/foreclosure_web_sites_offer_wide_range_of_listings/)<p>Has anyone had success with the foreclosure market? Could you be so kind as to share your advice?
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noodle
i'm in the process of closing on a place, myself.

i did all homework beforehand, researched the area, used zillow and craigslist
and the local MLS. i didn't trust any of the data provided on any of the
sites. i used past sales of comparable homes, price per sqft, etc..

once i got done with that, i contacted the person who appeared to be in
control of the most properties that i was interested in. sometimes, to make a
sale, a realtor won't double dip if they're both selling and buying agent, so
it'll be a discount to you.

after all that was said and done, i got lucky. a lot of this is about timing,
being able to wait around for a good deal or speed ahead full tilt to slide in
on one in time. i found an estate sale that absolutely wanted to close by the
end of the year, and as a result, i'm buying at 25% under the appraisal value,
and the appraised value is very conservative because of the market. after
things level out, it'll likely appraise another 20% higher.

my tips would be to simply become an expert on what the trends are in the area
you want to buy in so that you'll know exactly what a good deal is. unless you
absolutely need to move in by a certain date, take your time. the more
flexible you are, the better deal you'll land. and once you become an expert
in your area, find a realtor who is also an expert there.

~~~
noodle
let me elaborate on this phrase, as i realize i only put in a half thought and
can't edit anymore.

"i used past sales of comparable homes, price per sqft, etc.."

i did a lot of excel work to compare and graph historical and current costs
and such. i knew a number that i considered to be fair for the market, area
and building/neighborhood, plus or minus a bit for upgrades/issues and used
that number to make my decisions.

