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Today, I had a client ask me this question: Should I buy a foreclosure in Kansas City? What are my options/risks? Well, in Kansas City, it’s pretty much still a buyers market, and yes buying a foreclosure can be a wonderful deal, but don’t always assume it’s the best deal out there either. They usually need alot of work, and so you will need to know exactly what you are getting into before you make an offer on a property. It’s imperative to get a good buyers agent with experience in the area. Never buy a foreclosed property straight from the listing agent. Buyer’s Agents are No Charge to the buyer – so it’s always in your best interest to have an agent looking out for you.
Also, make sure your buyers agent is familiar with how foreclosures work (most experienced agents are). Having said that yes, you can get an awesome deal – but again, don’t have “tunnel vision” – like you refuse to consider any other property. The reality is foreclosures are driving the entire market down – so in order to compete, sellers are having to “short sale” and reduce prices of their homes too, if they want to compete. So often, dealing with a normal resale is an incredible deal as well.
One very important thing I have learned, is if you are really interested in a foreclosure – then spend $500 on a inspection BEFORE you ever even make the offer. And yes, you might be out $500 because you might decide to not put offer in – or you may get beat out. But most foreclosures are AS-IS and so if you wait, until after you have a signed contract, to do your inspections, they will not give you – your earnest deposit back, if you cancel. Another reason to do your inspection prior to your offer, is so you can make an informed decision on what your offer will be, given the known conditions of the property. You can also include your inspection report along with the offer, to show the bank your reasons for your offer. Often times, the bank is unaware of the condition.
My two cents – Would I buy a foreclosure? Yes, I have and will again – but you have to choose the right one. One last note – just because it’s a foreclosure, doesn’t mean it’s the deal of the century – even foreclosures can be over-priced. Alot of people don’t even ask their agent to do the research on comparable properties – because they just assume it’s a great deal because it’s a foreclosure. A good buyer’s agent will do the research – make sure you have one. Buying a home is probably one of the single most important assets you will ever own – don’t leave your investment to chance. Hire a good experienced buyer’s agent – Call The Kim and Kelly Team @ 913-735-7004. View our Testimonials Here.
Yours Truly,
Kelly Zarda, Real Estate Consultant
The Kim and Kelly Team – Foreclosure and Short Sale Certified
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