As many investors and first time home buyers look to Oregon, Portland foreclosures offer tremendous value and savings. Foreclosures allow homeowners to save between twenty to thirty percent on the traditional sales price of a home. Properties that are bank-owned, seized or repossessed inventory known as REO’s (real estate owned) offer an even greater discount; sometimes as much as forty percent of the traditional sales price. It is important to tread carefully and wisely when purchasing Portland foreclosures, your best bet will be to have a knowledgeable real estate consultant who will genuinely look after your best interests. This article will provide tips to secure maximum buying power and deep discounts.
Tip No. 1: Short Sales Can Be A Nightmare
Short sales usually involve very lengthy negotiations which must be approved by the lenders. Short sales for Portland foreclosures can take as long as a year to finally be approved and the discount is usually not so significant as to warrant such an arduous process.
Tip No. 2: Foreclosure Auctions Require Cash In Hand
If you are looking to score rock bottom prices with Portland foreclosure auctions keep in mind that you will need cold, hard cash. You will not be given the time that is necessary to secure a mortgage. More importantly you will be unable to see the inside of such a foreclosure as the current residents still own the property and by law they do not have to let you in for a viewing.
Tip No.3: Bank Owned Property Deals Are Similar To Standard Home Sales
If you are seeking financing in order to purchase a property, REO or bank owned real estate, the transaction is very similar to a traditional home purchase. Lenders usually hire real estate agents to show the properties to potential buyers, and home inspections are allowed. Mortgages are allowed and even encouraged when buying bank owned properties. Additionally, these deals tend to offer the best discounts on property as the banks are ready and willing to offload the property. Be advised that these are also in the worst condition, needing the most amount of work, and this is clearly reflected in the sales price. The pricing is proportionate to the damage and the fact that the bank is simply trying to recover as much as possible on the losses incurred.
Tip No. 4: Inspect Properties Carefully
If you are able to follow tip #3 you will be able to complete a walk through and perform a home inspection. A thorough and professional inspection is crucial because most short sales and bank owned properties are sold “as is.” Once your inspector has examined the property, make a detailed list with all of the problems and provide an estimate of the needed repairs. You can provide this list to the seller or agent in order to negotiate the lowest sales price.
Tip No. 5: Have Financing Set Up In Advance
In order to increase your chances of buying your selected distressed property make sure that you are approved. A bank or lender can approve you for a mortgage loan with a contingency based on the property appraisal. You will then be issued a pre-approval letter indicating this contingency which you can present the seller. Having your financing arranged in advance will facilitate your buying transaction. In today’s market there are multiple offers on bank owned properties and as such you really want to have all of your documentation in order to assure the seller that you can be ready at the closing table in the shortest time possible.
Tip No. 6: Hire An Experienced Real Estate Consultant
Consult with a real estate expert, preferably one who has experience dealing with Portland foreclosures and bank owned deals, as opposed to just hiring a realtor. Experienced real estate consultants will be able to help you execute the smoothest transaction based on their experience and relationships with banks and lenders.
Tip No. 7: Study Your Market
Before diving into buying Portland foreclosures, take a look at the average selling price of properties in the area of your choice. Also make a note of the average selling time. The longer it takes a property to sell the greater your chances of negotiating a lower price. Consult with a professional real estate consultant if you have any questions about these factors.
Tip No. 8: Realize That We Are Still In A Distressed Market
Now that you are ready to be a real estate investor it is absolutely crucial that you fully realize that in many ways, Portland along with most of the rest of the nation is still in a distressed market. It will be a few years before the real estate market corrects itself. Often novices purchase a property thinking that paint, new carpeting and cabinet handles will entitle them to a significant profit practically overnight.
Consult with a seasoned real estate consultant so that you can discuss your expectations and finances. This is a fabulous time to purchase real estate with the understanding that you will hold on to the investment for a few years. To learn more about how to make Portland foreclosures a successful part of your real estate investing, call (503)539-9094 or visit http://howtoinvestinrealestateportland.com. Discover how you can join our real estate investment training/mentoring/partnering group free for a limited time.