Big Rapids Foreclosures

Every November hunters take through the woods to hunt the elusive white tail deer. While there are always bucks the odds of getting a chance at a trophy are far and few between. In today's real estate market most buyers are looking for the classic repo they can buy cheap, put little to nothing into and then flip for enormous profits. Those houses are out there but a lot like the trophy white tail it takes time and experience to track them down. Case in point in late 2005 a nice 5 bedroom, 2 bath home sold here in Big Rapids for $125,000. House was rented out for $1,100 per month at the time. Same house in June of 2009 sold for $34,000. Not hard to see where someone could have made out on that one.

One thing to keep in mind when hunting for the "deal" is you are not the only hunter in the woods. Every agent has a couple investors waiting for the perfect deal to come along so when it does (and they do) it takes quick action by both investor and their agent to get an offer submitted in time. There are things you can do to slant the odds in your favor. Here they are:

1. Pick a full time, experienced Realtor® to represent you and spend some time coming up with a hunting strategy. This is critical to be successful at the foreclosure game.

2. Get with your lender and get pre approved PRIOR to looking. This is a must as almost ALL foreclosures and bank owned properties require a Pre Approval be submitted with bid or they will not even look at it.

3. Know how much you want to spend and stay within your budget. Things like property taxes and repairs can make a great deal a nightmare if not watched closely. Your agent should be able to help you in calculating the taxes.

4. Get to know the area the property is in. Ask your agent how hard it will be to sell once it is finished. Check proximities to schools and fire departments as well as drive through the neighborhood and see the condition of the neighboring homes.

5. When making the offer realize when foreclosures are first listed banks don't move much so think hard before submitting an offer. Too little and your offer might not be accepted which will open the door for the famous "Multiple Offer" scenario where if more than one offer is submitted at the same time the seller will ask for your highest and best offer. I have seen this happen and the house sell for more than the asking price depending on how great of deal it is.

6. There is an inspection period with all accepted offers- USE IT!!! Everyone knows when buying a foreclosure it will need some repairs but if the roof is bad and the well doesn't work you could drop $10K very fast. IF you have a trusted builder friend have him look at it or ask your agent for a few home inspector contacts.

7. I always recommend a pest test. There are companies that charge nothing if the deal doesn't close and less than $100 if it does so there is no excuse for getting caught with bugs. This can be done within your inspection period also.

8. One more note to pass on. Trust YOUR Realtor® to find you a home. People always see houses listed on foreclosure sites and call their agent. Most of those listing area either already sold or off market. Those websites rarely update often enough and time spent waiting for a return call on a already sold home could be used finding one still for sale. Most foreclosures are listed with an agent somewhere and your agent will know where to find the listings

Most important thing to remember is choosing the right Realtor® and doing your homework. To be a successful hunter means putting a lot of time into the hunt. You have to be willing to pass up on an OK deal to find the great ones. Good luck and God Bless.