subject: St Charles Il Foreclosure [print this page] St Charles Il Foreclosures is a huge area of interest lately. People are getting some amazing deals. I decided to make a video series to get the most popular questions answered and help buyers find that perfect deal. The following article is actually a transcription of one of the videos in the video series that I made.
One of the number one questions I get from people is,
Is buying a foreclosure really that much better of a deal than just buying a regular listing?
What do I tell people?
Well heres the transcription of the video that answers the question. Enjoy!
Debora: Hi, my name is Debora McKay with Coldwell Banker, and I'm making this video to give you some great strategies and insight about buying foreclosed homes.
As a matter of fact, this video is just one of a series that I've made to help you get a great deal on your next home. Whether you're buying your next home to live in, for investment or both, I know that you will get a lot of great information and can save you a ton of money, as well.
I also have Brian O'Dea here, whose expertise is in home financing, right?
Brian: So I'm here, even though Debora has thirteen plus years of experience, and is the No. 1 real estate agent in St. Charles. So many of the common questions that we get and that people have are related to financing. So I'm just here to fill in the gaps in this video series about buying foreclosed homes and distressed properties, and getting a great deal on a house
Debora: It can be, as long as you're aware of all the pitfalls that come along. I just recently closed on a deal where it was a bank foreclosure, and the property had lien issues, title issues, so it was tough to clear up. Even the bank wasn't aware of that until we did research for a new buyer and found these issues.
So if you have the ability to be patient, and understand all the pitfalls, and really, really want that property, then it can be a wonderful opportunity for you to get some great appreciation, buy below market value and have tremendous opportunity on the upside if you want to resell.
Brian: So really, it could be a way better deal.
Debora: Oh, absolutely.
Brian: I know you can't put a number on it, but just as a general rule, what would you say? How much better do you see?
Debora: I would say you're back to that 20 to 40 percent
Brian: That's huge.
Debora: It's a lot. And I think according to the improvements It depends on the neighborhood. I mean, obviously, if it's a home where nothing in the neighborhood is selling over $200,000 and you're buying this property for around $60,000, and you go in and you put $100,000 worth of improvements in it, you're not going to get that money back.
So you have to keep the perspective of the big picture of the neighborhood and what you're buying. A lot of times, you know, I'm using 20 to 40 percent off retail as just kind of the going rate. But sometimes you can do even better than that. It depends on
You know, I've had situations where the property has really deteriorated to a condition where the mold has overtaken the entire basement, and then you could get 50 to 60 percent off, and that's when some true opportunity But beware. You've to got know how to remediate the mold. And you have to disclose all of that, you know, for a reason.
Brian:So what you're basically saying, like the more problems there are, the more that the process is a hassle, the more appreciation you're going to get.
Debora: The more opportunity you have.
Brian: Okay. And why do you think Why is that? I mean, is it because there's less of a buyer pool for that particular property when you start to get into these issues?
Debora: Absolutely. Most people, most buyers want the property to be in great condition when they purchase it. I mean, that's 90 percent of your buyers. The small 10 percent, although there's a lot of people right now with the foreclosure sort of revolution that we're experiencing right now, every single buyer almost without exception comes to me and says, "Well, we would really like to buy a foreclosure property." Well, that's fine, but let me just tell you
Brian: Well, what are they really saying? They're saying they want a great deal.
Debora: They want a great deal
Debora: they want that perfect house without all of the issues. And, you know, right now I'm finding that sellers are pricing their homes very well, usually to compete with those properties, but they will never be as great as the deal that you can get on the foreclosure.
Brian: Gotcha. Okay, well that's a great answer to, is a foreclosure really a better deal.
And I'll go into more detail about why do these banks dump these houses so cheap. Debora's given me some examples of homes that she's sold where it just needs a few thousand dollars in work and the house could be totally up to spec, have a huge buyer pool, get a lot of offers, but they don't do anything. They don't do anything to the house and most situations, they're not even turning the utilities on and paying that small bill, right?
Debora: Right.
Brian: And you'd think, like, why wouldn't the bank just do this instead of like dropping the price and dropping the price and just getting it sold fast? And we'll go into that in some other videos in this series.
So, thanks a lot. I think that was a great explanation on that question. I think that everyone will get a lot out of it.
Debora: Thanks for taking the time to watch this video. I've really enjoyed making it for you, and I know that the information in this free video series that we put together for you will make a huge difference in your next home purchase.
Brian: So for more great information to help you avoid a lot of common mistakes and capitalize on some opportunities that most people never find out about, go to www.StCharlesILForeclosures.com.The website that I just mentioned is at the bottom of this video.
So go there, and you'll be able to access this whole video series that we've put together for free.
Thanks a lot, and good luck.
Debora: Thank you.
for the rest of the free strategy videos and St Charles foreclosure hotlist, go to:
http://www.StCharlesILForeclosures.com
Thanks!
Debora McKay-Realtor-Coldwell Banker St. Charles
Kane County's #1 Real Estate Agent and Foreclosure Expert
