Stocks, Forex and Other Money Matters

There is no question – now is the time to buy a house. Foreclosures are at an all-time high and their presence in the many markets creates a feeding frenzy every time a new one comes up for sale. These homes are listed in every section of the market and are often in very good shape structurally; some only need light cosmetics (think paint and carpet). Like anything in life, it pays to be prepared. Here are some tips to make your experience as profitable as possible.

1. Be Ready – Know Your Marketplace. Most foreclosures sell in 3 days or less so spend some time with your Realtor getting to know your target area. If you know the comps before a foreclosure hits the area, you will be prepared to act quickly and trump any other competitive buyers. Have a pre-approval ready and waiting to roll so there is no hesitation. If you wait, you might lose the deal before it even gets off the ground.

2. The Best Things in Life Are Worth Working For – Sure, some foreclosures are in excellent shape, but if you want a deal of deals, you are going to have to put in some manual labor. Figure out what things cost to replace from reputable, professional sources and look for homes with “good bones.” Finding good structural components should be your primary concern. Countertops and carpeting can always be changed later.

3. Inspect, Inspect, Inspect – Banks will not generally make any representations (or guarantees) about the property you are about to purchase; use some of the money you are saving when buying a foreclosure and get the best professional inspectors you can. A little investment up front can save you a LOT in repairs after purchase.

4. Be Prepared To Pay Close to Full Asking Price – In some of the hotter foreclosure markets (Florida, for example) banks are not willing to negotiate much on great houses. They price them at 60%-80% of fair market value up front in order to sell quickly and, if you waste time nickel-and-diming the bank, someone else is likely to purchase the home you like. This is especially true of new foreclosure listings.

5. Use A Realtor! A good agent can find great new foreclosed homes that fit your needs as soon as they come on the market and can be an invaluable tool when it comes to negotiations. Agents will be able to help you pinpoint good neighborhoods and potential trouble spots with your house. And since the bank pays the realtor at closing, he or she is free for you!

The markets right now are a perfect storm for sellers – but there has not been a market like this for buyers in several generations. Home prices and interest rates are really low right now making homeownership more affordable than it ever will be again. Now is the time to buy. If you wait until prices are rising again, you will have waited too long. And, if you are a first time buyer, the government has a special limited time opportunity waiting: $8,000 towards your new home.

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