While most people fear this type of market, it comes up rarely and offers home buyers a major opportunity for them to take a major financial leap. The conditions necessary for a foreclosure market center around a decent sized percentage of equity loss, overabundance of homes on the market, and a low amount of qualified homebuyers. As of today, We have all of these issues and it is a safe bet to say that we will be in a a foreclosure real estate market for the next year.
It is exactly this frenzy that starts people seriously considering foreclosures over other homes. Why? Because they find great homes and save lots of money. Qualified, strong financial homebuyers are hard to find in our current credit market. Due to this fact, good buyers can get screaming good on Temecula homes in foreclosure.
However, many people assume any home in foreclsoure is a great investment but that is far from true. Many times people need to see the truth in regards to foreclosures. When working with Temecula Valley foreclosures, three areas of focus that will aid you guarantee you have a great investment opportunity:
Aggressive and results oriented real estate representative Get thoroughly pre-qualified on necessary loan Have a method on how to weigh the benefits
First, it is paramount that you have a local and experienced Temeculu, Murrieta, Menifee, and Wildomar real estate broker working for you. You are purchasing a house, so the agent s service is absolutely free and is significantly valuable to you. They will organize the properties, list out the pluses and minuses of different investments in terms of long term value.
Any professional deserving of the title will use their tools to investigate the overall picture and team up with escrow and loan partners to make sure the transaction flows in good fashion. The one thing you want to make sure is that the foreclosure agent you select actually has solid foreclosure home experience.
Step two is to get your team in place by choosing and getting pre-approved with a loan broker that comprehends what is needed for a Temecula bank foreclosed home sales. The person picked needs to be able to react quickly and highly competitve rate wise. I have always equated a buyer as the person that owns the team, who then hires a quarterback to lead the team.
Running with this analogy the QB is the real estate professional and then lending or loan broker would be the running back on the squad. Often your real estate professional will be able to offer some loan brokers for you to consider that they have worked with successfully in the past. With a Temecula or Murrieta foreclosure, the real estate broker and loan officer have to be in sync or you may miss the best long term investment opportunities.
This is where we get to the third final step in buying a foreclosed listing, weighing the overall value of one property over another. This is where a good agent swings into action and will start breaking out some fundamental foreclosure investment factors. For example, how much work is needed on each? Which home has a more valuable lot location inside the neighborhood and what are the adjacent properties like? Has either property been vandalized? Is there any criminal history at the either foreclosure or past insurance claims? What is the property tax rate of each listing and how do they contrast with one another?
These variables and many more need to be examined in detail, in a small period of time to disern the best overall investment value. Often homebuyers purchasing a Temecula foreclosure home just assume they will get a great deal. Perhaps they see a Murrieta foreclosure home that is $60k under the last comparables in the tract, so it is a screaming bargain. However, if it needs any major repairs, has a bad lot, or is positioned poorly in the tract (facing a main road, etc.) its true market value is severely reduced.
But lets say that the Murrieta CA home is the ideal 3-car garage model in the tract, has a large lot on a cul-de-sac, but needs carpet, paint and some minor yard repairs, I am going to send it over to my homebuyer. A good real estate professional will be detail oriented and make sure to check the school system, look for additional value aspects like a view, or check crime rates, etc. Because when all is said and done the Murrieta home has the combination of value variables that make it far and away the best purchase option over the Temecula foreclosed home.
The final issue that contributes a large part in buying any good Temecula, Murrieta, Menifee, or Wildomar foreclosure home is time. How long will you take to get an offer in? Will someone beat you to the punch? You have your squad in place, the real estate professional has foreclosure home background, and your financials are ready to roll. All that is key because the best Temecula foreclosed home deals go FAST! Make sure you know the payments, know your contingencies, and are ready to roll. Be smart and fully work out the overall value and long term potential of a foreclosure purchase, you will do great in today s market! Stefan West is a recognized expert of Temecula, Murrieta, Wildomar, and Menifee Foreclosures. Please visit http://www.stefanwest.com to learn more about Temecula homes.
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