Andre L. Allen, REALTOR®, e-PRO

More often than not, when a Buyer decides to make an offer on a bank foreclosure, they feel they should discount the list price by the amount of money the Buyer thinks it will take to restore the property to "live-in" condition.

First, each Buyer defines "live-in" condition differently. Granite counter-tops and brushed nickel fixtures are upgrades, not necessities. Secondly, in determining a list price for each property the banks are now taking the condition into consideration.

In many cases they are pricing below, and sometimes well-below, needed repairs to bring the property up to "live-in" condition. It is your decision, as a Buyer, to make what you consider to be a fair and equitable offer, but understand that you may risk the bank accepting another offer over the one you submit because that other offer was higher.

A REALTOR® can perform a market analysis on your behalf to help you determine what a property would be worth once it has been restored to "live-in" condition.

Make sure you hire a REALTOR® to represent you with your next Real Estate purchase or sale. Read a previous post on "Don't buy a foreclosure without a REALTOR®".

If you are thinking of buying or selling a home, contact Andre Allen, REALTOR® with Keller Williams Realty - Atlanta Partners servicing the real estate needs of Metro Atlanta, GA. Contact me at (404) 939-3731 or AndreAllen@kw.com.

Over the past few weeks I have been posting my thoughts, opinions and information on the "system" of purchasing a foreclosed property. I listed 10 Things You Need to Know, but I am going to share #0. Don't buy a foreclosed property without a REALTOR®.

Purchasing a foreclosed property is a long and winding road and it should be traveled with an "experienced" driver. Most real estate agents are familiar with the twists and turns, so this is not something you should attempt to navigate without representation. The listing agent for a foreclosed property is obligated to the bank to help them recoup as much of their investment as possible. As a Buyer, you want someone to represent you and your interests. Working with a qualified REALTOR® is the best way to do that.

Before working with any real estate agent, ask them about their experience in working with foreclosures. The answer received should help you determine if they will be successful assisting you in the transaction. If you receive the look of a deer in the headlights, this agent may have been run over a time or two by the "experienced" driving agent.

If you are thinking of buying or selling a home, contact Andre Allen, REALTOR® with Keller Williams Realty - Atlanta Partners servicing the real estate needs of Metro Atlanta, GA. Contact me at (404) 939-3731 or AndreAllen@kw.com.

10. The Foreclosure System is Currently Overworked

With the onslaught of foreclosed properties in housing markets around the county, Real Estate Professionals are experiencing problems they've never seen before.

The increased volume and never ending Seller demands has stretched listing agents beyond their capabilities. As a consequence, phone calls are not returned on a timely basis, the multiple listing service is not updated regularly and often times the information is wrong.

The foreclosure departments at the banks are overloaded as well and their response to offers can be slow. This process can be very frustrating to a Buyer.

Patience is a virtue in this purchasing process, so be prepared and understand that you are working within a "system" (The Bank Sets the Rules). Unlike you as a Buyer, banks have no emotional attachment to the properties on their books so don't be offended if you have not had a response according to your timeline...it's not personal.

If you are thinking of buying or selling a home, contact Andre Allen, REALTOR® with Keller Williams Realty - Atlanta Partners servicing the real estate needs of Metro Atlanta, GA. Contact me at (404) 939-3731 or AndreAllen@kw.com.

9. Penalties

There are stiff penalties for every day the closing is delayed, beyond the date specified in the contract, by the Buyer or the Buyer's Lender.

A typical penalty is $100 per day, and there can be a minimum fee if you request an extension. It is imperative that you as the Buyer cooperate fully with your lender in providing documentation in order to ensure your loan makes it through underwriting so you can close on time. If a delay in closing is experienced as a result of some action not taken by the Seller/Bank, there is no penalty assessed.

Time is of the essence if you want to eliminate penalties. As a Buyer, communication with your real estate agent, lender, inspector and appraiser are essential. Don't give back money when you don't need to.

If you are thinking of buying or selling a home, contact Andre Allen, REALTOR® with Keller Williams Realty - Atlanta Partners servicing the real estate needs of Metro Atlanta, GA. Contact me at (404) 939-3731 or AndreAllen@kw.com.

8. Banks Select the Closing Attorney

In most transactions, banks have their own attorneys and will require you use them. Although there have been plenty of successful negotiations to select an attorney you or your real estate agent may have a relationship with, this allows the bank to control the transaction.

There is a relatively small group of attorneys that typically handle foreclosed properties for the lenders in Metro Atlanta. They are well-versed in the bank's process and will be best prepared to ensure a smooth and timely closing.

Because of the current volume of foreclosed properties, these law firms are on very tight deadlines and may "appear" to not be cooperating with you as a Buyer. You therefore have the option to obtain your own attorney to represent you at the closing and this may be at your own expense.

If you would prefer to close with a particular law office it does not hurt to ask. You may be surprised and get what you ask for.

If you are thinking of buying or selling a home, contact Andre Allen, REALTOR® with Keller Williams Realty - Atlanta Partners servicing the real estate needs of Metro Atlanta, GA. Contact me at (678) 252-2959 or AndreAllen@kw.com.