By Sunny Isles Real Estate Expert on May 10th, 2011
Because so many Miami homes are now in foreclosure
the market is favorable to buyers who have money to invest. Making sure that you actually get to take advantage of the best deals on the market, however, requires some foresight and some serious consideration of the realtors that you work with. There are some differences between agents that some homebuyers are not aware of, in most cases, but which are absolutely vital to getting the best deals out there.
Realtors And Their Access
Not every real estate agent has access to foreclosure information. In the cases of those that do have access to foreclosure information, not all of them boast the expertise required to make sure that their clients get the best deal when they purchase home that are foreclosed upon. There are several ways that a good agent can help you if they understand foreclosures and the process of buying these homes well enough.
First, make sure the agent has a very good understanding of the Miami real estate values. As people are beginning to understand, foreclosed upon properties affect the values of the properties around them, which may mean that the realtor can get you a better deal than is immediately apparent. Make sure your realtor has this sort of expertise before you start working with them.
actually working with foreclosed properties is also imperative. In most cases, they’ll have a more comprehensive understanding of the market on the whole and will be able to direct you toward the best bargains on the market at any given time.
Miami Short Sale Condos: Are they Good Deals?
A bank that has foreclosed upon a property is a very motivated seller. Where short sales are concerned, this is less so. Properties that are being offered in a short sale are not repossessed by the bank, so there are generally more delays for the buyers.
In most cases, the banks will consider the properties that they own outright—meaning those that they have already foreclosed upon—to be the priorities where selling them off is concerned. Short sale properties are not a total loss for the bank and the homeowner and their realtor will be actively doing the work of selling those properties off.
is also subject to a competitive bidding process. The actual sale of the home may take as long as a year to complete, so you may not want to deal with these properties if you want to take advantage of current market conditions. You’ll also be up against other bidders. The whole point of buying any type of distressed property is to get the best deal possible and, with many other bidders working against you, this is much harder to do with a property that’s being sold as a short sale.
The Right Bid
Where distressed properties are concerned you’ll always want to offer a lower price than is being asked. It’s important to make a realistic offer, however, to avoid simply wasting your time. A good realtor can make sure that you don’t offer too much, but that the offer is also enough to be interesting to the bank. This ensures that you get the most value out of the deal.
In some areas that were particularly hard-hit by the housing crisis, the bank may be willing to entertain offers that are substantially lower than the asking price. The condos on the Marcos Islands, for example, can sometimes be purchased for prices well below the asking price. Your realtor will be the best route toward making sure that you know how much to bid for any given property.
A good realtor may be able to get the banks to cover your closing costs. Sometimes they’ll refuse, but it’s always worth it to ask. Remember that every day a bank owns a property is a day that they have to cover the costs of that ownership and it may be worth their while to help you with these costs simply to get the property off of their books.
Financing / Credit Score
You’ll want to get pre-approved, if possible. This ensures that there is minimal delay when you want to make your move to purchase the property. If you show up with the money for the purchase basically in hand, it makes the deal much more attractive for the bank. It also lets them know that you’re serious about the purchase.
It’s also important to take the pre-approval step simply because the credit markets are much tighter than they were even a few years ago. By having pre-approval for the funding for the house, you can be certain that you’ll be ready to close the deal and, if it all works out right, that you may not even have to pay for the closing costs themselves!