by Dan Wolf
on Wednesday, October 30th, 2013 at 5:51am.
If you’re considering buying Anchorage foreclosed homes as either an investment or a family home, you’ll soon discover the process is very different than buying a typical resale home.
In most cases when buying Anchorage foreclosed homes, you will only require the services of the real estate agent. The vendor will expect cash or a pre-approved letter from a mortgage provider before agreeing on an offer. There isn’t much room for negotiation, if any at all. The property comes as is and the buyer must assess the costs of all repairs before buying. You may want to take an experienced builder with you to help assess the home for any faults or damages you may have missed previously.
Nearly all bank owned Anchorage foreclosed homes will be vacant possession which will shorten the buying process considerably.
Buying Anchorage foreclosed homes can be a little frustrating and discouraging at times but don’t give up. Eventually you will get a home for less than the market price although it may need a few repairs.
In times of economic uncertainty there is always distressed properties, Anchorage foreclosed homes, and short sales available on the market. Short sales are where the owner of the house sells for less than the amount owed on the mortgage. This can only happen with the bank or mortgage provider’s approval.
When considering buying Anchorage foreclosed homes, you’ll need to find a real estate broker who has experience dealing with Anchorage foreclosed homes and banks. You'll also need a pre-approved letter from your bank unless you're a cash buyer.
How to Get Help Buying Anchorage Foreclosed Homes
In the United States one third of all properties sold in May were distressed properties. The largest chunk of those properties went to first time buyers. As a new buyer, it's important you learn more about the five steps to buying Anchorage foreclosed homes.
#1 - Get Pre-Approved
As a first time buyer, it is important to always have a pre-approved letter on hand from your bank, mortgage company or lender. The sooner you have this letter, the faster the process will be at buying Anchorage foreclosed homes.
#2 - Hire an Agent
Take the time to research and interview a few real estate agents you would be interested in working with. Hiring a real estate agent who has experience dealing with Anchorage foreclosed homes will only help you get the home you want for the price you want.
Looking through foreclosure lists, you’ll quickly find real estate agents who deal with Anchorage foreclosed homes. Banks generally hire real estate agents to handle REO sales. In many cases you’ll be able to deal with the bank instead of a buyer’s agent, which will reduce commissions.
#3 and #4 - Research
It is essential to sit with your real estate agent and discuss the process of buying Anchorage foreclosed homes. Find out how long it will take for a property to sell in the price range you have chosen. You will also want to discuss the sale prices of similar homes in the area.
Check out websites that list Anchorage foreclosed homes. Visit all real estate agents in the Anchorage area where you will like to buy. If you see the initials REO it means real estate owned (bank owned). This means the property has been through foreclosure and the lender is selling it upright.
#5 - Prepare for Repairs
Remember, as a buyer, you are buying Anchorage foreclosed homes 'as seen' meaning you are responsible for making any repairs needed after you have purchased the home. With that said, always consider the cost of repairs when choosing your price range.
Many real estate agents have long established relationships with banks so they will know when new properties have been listed. Don’t be shy to ask about properties coming onto the market. It takes time for a new Anchorage foreclosed home to be listed on the database.
However, Anchorage foreclosed homes are snatched up quickly. You may need to make many offers before you get the home you want. It helps to prove you’re a serious buyer by having the pre-approved letter from your bank or mortgage lender on hand.
If you are determined and not put off by a few disappointments, you can get an Anchorage foreclosed home considerably below market value. Remember, it is entirely up to you to estimate and pay for any repairs that are needed prior to moving in.
Need more help buying Anchorage foreclosed homes? Contact us and we can help!