Lesson in Home Buying – Steal a Deal

by Mike Yeo on August 10, 2011

Coming directly from my clients, here is their experience as they learnt that finding a “steal” is not as important as finding the right house for their family.

Whenever clients call me, one of our first conversations include Finding Foreclosures. They normally dont tell you Why but they ask you to only show them REO (real estate owned) homes aka to home buyers as “Foreclosures”.

Later, in your Initial Home Buyer counseling session, you dug deeper and found out that their reason for seeking out Foreclosure properties is because that’s the place they think they could buy a bargain.

Is that true? Sometimes. Sometimes that plan can back fire very quickly if you only limit yourself to the REO properties available on the market.

Kings Lake of Kings Ridge in Plano TX

Just imagine, a Pottery Barn house (like the magazine), nice smelling, squeeky clean, move-in ready condition along with the latest and greatest upgrades. Granite countertops, stainless appliances, 3-car garage, good-sized yard, neutral colored paint, two-story floor to ceiling great room, kitchen opens to the great room, 5-in hardwood floors. Just waiting for your arrival. Then, take as much time as you want to write up a “steal” offer ie 40% below Fair Market Value. The bank will say “Yes, please take it off me”. No one else fights that property for you. It’s all yours for the taking.

Don’t you love this picture perfect world? TOO BAD. We live in Reality.

Here in Frisco TX (and anywhere else in the country for that matter), accurately priced homes at top notch condition DO NOT stay on the market very long. In fact, 2 – 3 weeks is all it takes and do not be surprised that you may have to fight through multiple offers.

Then, there are those who are in the market for over 6 months, 1 year or even 2 years. The foreclosure homes come with holes in the wall, missing appliances, pet-peed carpet. Those that you might need to hold your breadth during the entire visit in the house.

Now, that may be an extreme of REO properties and it may not be an accurate description.

You must write an offer on the property on Day 1 and right after the showing. This was how my clients won the property they call home now after fighting several multiple offers to get here.

Bottom line is that if you want a real steal, you need to act fast. You do not have time in the world to make up your mind. However, in the end, I usually end up with stories like below. Stealing a Deal is no longer as important as finding the right home for the family.

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When we first started looking as first time home buyers, I was really focused on getting a “steal” because of the foreclosure situation. In the end, we ended up realizing all the other factors were more important to us – the neighborhood we liked the most, the style of the house, the location of the schools, a park. So while maybe we didn’t get a steal, we did get a great value and more importantly we got a beautiful home we’re very proud of and excited to live in.

I really appreciate Loreena’s patience, knowledge & guidance, and always going the extra mile for us. I’m looking forward to working with her in the future.

Happy Home Buyers Jerry and Ruth in Frisco TX

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Contact:


Loreena Yeo
Frisco TX Realtor® / Broker of 3:16 team REALTY
(214) 783-2210
loreena@loreenayeo.com

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Lesson in Home Buying – Steal a Deal

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