Over the last few years, we have continued to see a lot of foreclosed homes on the resale market. Banks have been slowly releasing them to maximize their return, while being careful not to flood the market by releasing them all at the same time. This has created a unique situation in our area, since so many home buyers are from outside of the state of Florida. So what do you need to know in order to complete your home buying transaction on a bank-owned foreclosed home while out of state?
- Expect multiple offers. These types of properties are usually priced at or below market value and that creates a lot of interest from buyers. So much so that it’s common to have 2 to 5 offers all come in on a property within the first week of it being listed. This can be very frustrating for buyers, but it’s still worth the headache to try and purchase a well-valued home. The best advice is to make your strongest offer first, limit your contingencies if possible and try to shorten the closing date. All these things are most appealing to a bank and it might make your offer appear better than the others. Luck might be on your side and they just might accept it!
- Get the home inspected. Many times buyers elect to skip the home inspection, knowing that the bank won’t fix anything anyways. Most bank-owned homes are sold in as/is condition. This can be a huge mistake. A licensed and well-experienced home inspector can find things that might become major problems that a novice home buyer might easily over look. A home inspection can cost a few hundred dollars, but missing something important could cost thousands of dollars later on to the new home buyer.
- Get to know the rules and regulations, as well as budget and financials, of the gated community you are buying in. It’s important that you know the financial stability of the neighborhood you are buying in as well as rules like how often you can rent your home out. Do your homework and do it early!
- Don’t worry! You can close on the property from anywhere in the world. It’s easy to close with email, fax, and FedEx. I find it to be more common nowadays that buyers close from their hometowns and much rarer that they actually attend the closing in person in Florida. Save your time and money and go for the convenience of doing a mail-away closing.
If you are out of the area, don’t worry. There are a whole slew of professionals down here waiting to help make your transaction go smoothly!
Gabe Mellein was voted a Top Real Estate Agent – Exceptional in Service and Overall Satisfaction by Gulfshore Life Magazine in 2012 and 2013. He is the broker of Gulf Pointe Properties, Inc and has over 9 years experience in the SW Florida Real Estate Market. He is a member of The Naples Area Board of Realtors, Bonita Springs – Estero Association of Realtors, Realtor Association of Greater Fort Myers and the Beach, The Florida Association of Realtors, The National Association of Realtors, and is nationally certified in Feng Shui for Real Estate. Need real estate help? Please contact Gabe at: 239.825.2234, Gabe@GulfPointeProperties.com or www.GulfPointeProperties.com