Most home buyers have the same goal; Get a great price on a good property!  So one of the popular ideas is that you’ve got to get your hands on a foreclosure list.  Buy it from direct from the bank and save tons of money over retail.  Sounds like a super plan but are you willing to do the work?

Searching the MLS

Truth is that searching homes for sale in Portland, Beaverton, Lake Oswego or other areas is done pretty much one way, online.  Portland’s MLS system (RMLS, regional multiple listing service) is the source for 99.9% of properties advertised for sale.  Whether it’s John L Scott, Prudential, RE/Max or whoever all listings are input into RMLS.  From there the information is just redistributed to everyone’s website.  Foreclosures (bank owned properties) are typically no different.

Banks work with local Realtors to get their properties sold at fair market value as soon as possible.  Dumping them to a handful of cash buyers on courthouse step doesn’t do much for the sale price.  List them in a MLS and these properties will get a million times more exposure, bumping up the sale price.  If you’re searching online properties for sale you’re already getting the vast majority of foreclosure listings.  This may not be overly apparent because buyer’s generally don’t know who the seller is.

Portland foreclosure lists

Yep, they’re all trying to sell you something of public record.  Foreclosures are out there but today more than ever and a few of such are purchased by full-time investors for cash on the courthouse steps.  You’ve got to be there with certified funds (10% minimum in cashier’s checks) to even participate.  Seller’s (banks) won’t wait for the lucky bidder to secure conventional financing and close weeks later.  Good luck easily finding a published list outside of what’s already in the MLS.

Notice of Default lists

NOD (notice of default) lists are the only thing I know of distributed for free.  These are public notices of people who are at least 3 months behind on mortgage payments.  Lists are distributed by the title company and are the first step to potential foreclosure.  Cash buyers, Realtors, and property solutions people promoting “win-win” garbage all prey on these homeowners.  It’s a full time job for people choosing this route (trying to capture a potential easy buck) and what they’re promoting is to “save the homeowner from foreclosure.”  Some chasers are legitimate (Realtors for the most part), others not.  I’ll argue in depth about the scammers out there if you want to listen…

Short-Sale Listings

In reality these days the majority of properties go through short-sale negotiations (bank agrees to work with a seller and take a loss rather than go through the more expensive foreclosure process, losing even more $$).  Properties are listed in the MLS and you’re already seeing them within the set search parameters if they exist.  Bank representatives generally don’t give the properties away as urban myth would have you believe.  By far the majority of foreclosure and short-sales sell through Realtors on RMLS.

Summary

Late night TV is great for promoting a bunch of trash.  But if you’re willing to make it a full-time job… you may get lucky eventually.  There are easier ways of accomplishing the same goal and getting a good deal.  Contact a good Realtor in Portland!  Keep in mind too that foreclosures generally come with cosmetic or bigger issues, especially in our target price range.

I’m wrapping up my 6^th yr in real estate and figured out long ago that this avenue was a giant headache… and I love doing rehab!  Out of the thousands of people I’ve talked with about real estate I’ve met 2 folks who’ve actually purchased foreclosures on the courthouse steps and know that the one guy was barely breaking even after all was said and done.

Investigate Beaverton, Hillsboro, Tigard, Lake Oswego and Portland neighborhood information at www.MaxwellSinclair.com , we’re happy to help!

It’s a buyer’s market here in Portland Oregon and everyone knows it.  Prices have changed dramatically over the last year or so, home buyers can reap big benefits.  While exactly where the market will land is unknown one thing is certain when looking at history; It’s a better time to buy now than within the last three years!

Here are a couple of buyer tips:

1. Look at the comparable recent sales and make an offer lower than perceived market value.  Notice that I didn’t say lowball the heck out of 20 houses.  This approach is a giant waste of everyone’s time for the most pat.  Comparing current sales data is required, regardless of market conditions and most everyone does it.

Let’s say for example that you’re looking to buy a house in Beaverton Oregon.  Comps on the house of choice point to market value being $300k.  Given current real estate conditions a realistic offer may be $280k.  Most sellers will probably counter at a higher price.  Stick to your guns and counter back with original offer price.  Leave the ball in the seller’s court.

2. Don’t get emotionally attached to the outcome.  This tactic will suit you well in the long run.  People tend to pay more once they’ve mentally moved into a house and started arranging furniture.  Look at home buying from two standpoints.  It’s a place to call home and an investment.  Money is made on the purchase not the sale.  Disengaging from the outcome of your offer keeps the decision more business like.  So a seller doesn’t accpet your offer.  Big deal.  Plenty more to choose from!

3. Knock the price down after inspection.  Some buyers want to play hardball and really push for a lower purchase price.  Others would prefer a softball approach.  It’s up to you and your Realtor can address either avenue.

Once home sellers come to an agreement arrangements for their move become more solidified.  Much of this goes back to emotions.  Mentally, they’ve sold the house and are moving on.  Buyers control transactions for the first few weeks and it’s up to them to continue or potentially walk away after inspection.  Seller options are limited.  Typical inspection periods run 10 business days here in the Portland Metro area.  Pushing inspection negotiations towards the 2 week deadline gives sellers more time to move foreward with their plans.  Remember, they’re selling because they want something…

Get that professional home inspection.  Minor or major, suggested repairs show up 99% of the time during these closer looks.  One of the most common approaches is to get contractor bids for such repair points and go back to sellers asking for a price reduction (compensating for repairs costs).  Who says it has to be a dollar for dollar reduction?

Buyers willing to play hardball can come back with a take-it-or-leave-it approach.  Asking for additional money to compensate for (insert additional excuses here) house/market shortcomings is an aggressive approach.  Sellers will be ticked but they’re faced with a choice.  Move on with bird in hand or risk putting their home back on the market only to weather additional market downturn or potential repeat of a similar offer.  Tough one…

For the most part experience says that the majority of home buyers take a balanced approach and ask only what is perceived as a reasonable repair cost.  Price still goes down in the end and buyers can address non-critical repairs at their leisure.

Additional Portland Metro area home buying tips are available at www.MaxwellSinclair.com