Idaho foreclosure properties offer a great opportunity for homebuyers to get into a home for less money than they would normally spend and Idaho Real Estate Investors to make a good profit. Sellers in a tough financial spot may sell for less than the market value if they are facing foreclosure and, once a home is already foreclosed, bank owned homes in Idaho can sell for anywhere from 50 to 80 percent of market value. Mostly what banks are looking for is to pay off the balance of the defaulted loan and recoup as much of the late fees, penalty and interest they are owed. Whether you're interested in buying an Idaho foreclosure property to flip or just want to find a nice home for your family at a great price, there are steps to take when buying a foreclosed property.
Get Your $$ Together
The process for buying bank owned homes in ID is a little different than a typical buyer/seller transaction because you won't be dealing with just one or two people. There is a lot of red tape to go through and, often, there are multiple levels of approval on the bank's side. The extra time it takes to receive and accept an offer on Idaho foreclosure properties, however, should not give you a sense of having ample time to get your funds together. There is stiff buying competition for many foreclosure listings in Idaho, so you'll already want to know how much you can spend on a home, have you loan pre-approval and have the down payment ready and waiting. That way, when you find a property you are interested in and your offer is accepted, you won't lose the opportunity to a cash buyer who has ready funds. Tip: look into a HUD 203(k) loan. It will allow you to finance the home and the necessary repairs to be completed after closing but only if you'll be owner occupying the house.
Contact a Real Estate Agent
When you are interested specifically in foreclosures local real estate agents have the scoop on Idaho foreclosure properties. Banks and financially stressed homeowners list foreclosure homes with them because brokers and agents are experts in selling homes. They know how to market houses to sell them as quickly as possible, an important element when a home has been foreclosed. A real estate agent can provide a list of Eagle, Meridian, or Boise area foreclosures and take you to tour them, so you can see them inside and out for yourself. A real estate agent can also tell you what similar homes are selling for so you can bid wisely, but competitively.
Get an Inspection
A home inspection is especially important when you're considering buying a foreclosed home. Many only suffer from neglect, but some have actual damage that may have been present for as long as before the foreclosure. It is reasonable to expect there to be at least minimal repairs needing to be done, but a professional inspection will reveal the trouble areas so you can get an estimate of repairs from a contractor. Also, some disgruntled former owners will take appliances and other important items from the home, some of which may not be visible.
Make an Offer
Once you know what price range your potential home is in and what repairs will be necessary, you can calculate how much you want to offer on the home. If you're not facing much competition for the house, you can start with what the home would sell for if it were well maintained, subtract what the repairs will cost, and then make an offer for 80-90 percent of that amount. An alternative approach would be to offer 15 percent below market value, provided that there isn’t too many major repairs that need to be done. If those two figures overlap, then you know your bid is realistic. This is another area where a real estate agent can help. You will have to decide on the actual price that you bid, but he will be able to offer advice based on his experience with foreclosures and can tell you whether the competition is stiff or non-existent. A Real Estate Broker like Jeff Stewart can help you find great properties as well as navigate the complex process of dealing with banks and auction situations to be successful.
The team at Stewart Realty knows homes and they know Southwest Idaho real estate. To find out more about real estate in the Boise Region give Jeff Stewart at Stewart Realty a call to set up your personal real estate search, a personal tour of the area and find some great homes that fit your needs and budget.
Jeff Stewart, Broker/Owner 208-602-1993 or email@example.com