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Chasing #Foreclosures! An Excellent 2 Bedroom Condo! #foreclosure

It’s Foreclosure Saturday! We have a standing appointment every Saturday to meet with our Real Estate Broker and look at foreclosures. We believe the real estate market is poised to take off and we want to be on-board the rocket ship! Therefore, we are always looking. When you think of foreclosures, you probably think of properties in poor condition, and sometimes they are … In this case, we are viewing a 2 bedroom condominium that is in excellent condition! The condominium association has done an excellent job on curb appeal, which is very important! When considering condominiums for investment, the effectiveness of the condominium association is critical. The first evaluation of a condominium association is how well they are maintaining the physical appearance of the property.

The kitchen is in very good condition. There are numerous upgrades such as oak cabinets, granite countertops, ceramic tile flooring, and fairly new full-size appliances (refrigerator, stove/oven, dishwasher. The only missing item is the microwave.

The living room has a fireplace, and Pergo flooring. There is no need for painting at all! The small bedroom has a ceiling fan, a window with a view of the deck and wooded area.

The master bedroom faces the front of the building, which is nice because some tenants who have expensive vehicles like to keep an eye on their investments! Others like to look out of the window to see what’s going on in the neighborhood.

The deck off of the living room is gorgeous! It provides a very nice view of trees and landscaping.

It did not take long for us to make an offer on this foreclosure! Since the property was in excellent condition, we decided to offer 10% less than the asking price. Our Real Estate Broker submitted the offer, and within 24 hours, the Seller made a counteroffer. The Seller’s counteroffer was 6% less than the asking price. We decided to reject the Seller’s counteroffer, and wait to see if any other offers surfaced. After about 1 week, our Real Estate Broker informed us that the Seller accepted a better offer from an “owner occupant.” We are disappointed, but as real estate investors, we know that more foreclosures will come along …

Chasing Foreclosures! An Excellent 2 Bedroom Condo! #foreclosure #condominium is in excellent condition so we made an #offer at 10% below #asking price #listingprice. #seller made a #counteroffer at 6% below asking price. We decided to #reject #sellers #counteroffers & wait to see if any other #offers surface. A week later we heard from our #realestatebroker that the #seller accepted a higher offer from an #owneroccupant. Oh well – you #win some you #lose some! Other #foreclosures will come along … #realestate #realestatetips #realestateinvesting #realestateinvestor #realestateagent #realestatepics #realestatephotography #realestateinvestments #investmentproperty #investmentproperties #realestateinvestment #realestatephoto #invest #investing

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For beginner real estate investors, it is crucial to understand that repairs affect profits. When viewing foreclosures, we weigh the cost of repairs versus the potential profit. There is a higher risk associated with foreclosures. When real estate properties sit empty, the potential for leaks increases because no one is present to identify the leaks when they occur. In this case, we did not notice any leaks.

Estimate how much it will cost to make repairs, and subtract that amount from the list price. Since the real estate investor assumes the risk, knock off an additional 10% -20% from the asking price, depending on the condition of the property. Negotiations begin with the seller by making an offer. The first offer is a test to see where the sellers “low point” is. Once we receive a response from the seller, the negotiations escalate! In this case, a major bank owns the foreclosure, so there is no emotion involved on the seller’s part. We have learned that it’s best to deal with emotion-less sellers. When making low-ball offers, we don’t have to worry about insulting the seller. To learn more about negotiating real estate transactions, click here.

To see more of our foreclosures, watch our Chasing Foreclosures playlist on YouTube!

Have you discovered any tips when bidding on foreclosures, particularly fixer uppers? If so, please share your tips:

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The opinions expressed herein are solely those of the Author/WebMaster. Before taking any action, please consult your real estate, financial, and legal advisors.


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