Anyone have success buying in the foreclosed home market? | Hacker News Reader

Anyone have success buying in the foreclosed home market?

4 pointsniels_olson2 comments

My first homebuying experience was a bit odd (three generations of a friend's family, complete with general contractors and real estate agents, all sat around laptops one night while we fed them beer and pizza until they found the best houses for us).

This time . . . not so lucky. What sites to use? What are the key variables? I've mapped my new workplace and the best schools in the area. I know the general info about my area. I lived in the same city for six months about 8 years ago and I have friends in the area and I have a 10% down payment. The question is, today, what's the best way to buy the best house cheap?

Foreclosures obviously come to mind, but after trying Zillow and Foreclosures.com and foreclosure.com, this is clearly not a market I'm familiar with. This Boston Globe article provides minimal insight (http://www.boston.com/business/personalfinance/articles/2008/12/19/foreclosure_web_sites_offer_wide_range_of_listings/)

Has anyone had success with the foreclosure market? Could you be so kind as to share your advice?

i'm in the process of closing on a place, myself.

i did all homework beforehand, researched the area, used zillow and craigslist and the local MLS. i didn't trust any of the data provided on any of the sites. i used past sales of comparable homes, price per sqft, etc..

once i got done with that, i contacted the person who appeared to be in control of the most properties that i was interested in. sometimes, to make a sale, a realtor won't double dip if they're both selling and buying agent, so it'll be a discount to you.

after all that was said and done, i got lucky. a lot of this is about timing, being able to wait around for a good deal or speed ahead full tilt to slide in on one in time. i found an estate sale that absolutely wanted to close by the end of the year, and as a result, i'm buying at 25% under the appraisal value, and the appraised value is very conservative because of the market. after things level out, it'll likely appraise another 20% higher.

my tips would be to simply become an expert on what the trends are in the area you want to buy in so that you'll know exactly what a good deal is. unless you absolutely need to move in by a certain date, take your time. the more flexible you are, the better deal you'll land. and once you become an expert in your area, find a realtor who is also an expert there.

let me elaborate on this phrase, as i realize i only put in a half thought and can't edit anymore.

"i used past sales of comparable homes, price per sqft, etc.."

i did a lot of excel work to compare and graph historical and current costs and such. i knew a number that i considered to be fair for the market, area and building/neighborhood, plus or minus a bit for upgrades/issues and used that number to make my decisions.

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