Windermere & Dr Phillips Realty

Looking back the first quarter of 2009 was probably the best time to land a Dr Phillips home at a great deal.  In 2009 it didn't matter what price you had on a home, there were only a handful of buyers that could purchase and banks were very tight lending money.

Today more and more buyers are entering the market but with fewer homes to choose from.  Central Florida inventory of homes for sale are at their lowest in years, 10,000 and 33% lower then the same time May 2010.

So how does a buyer purchase a bank owned property at a great deal with the increase in competition for Dr Phillips homes and the decrease in homes available?  By following these 5 steps you will find yourself a proud owner of Dr Phillips home and also a great investment for the future. 

1.   Stop calling every number on a for sale sign- Seriously, get a professional to help you find homes the first day they come on the market instead of looking through stale old listings, there's a reason they are still on the market.  Just this past 30 days Median priced homes were on the market 18 days before going under contract.  Find a local Realtor with experience in bank owned properties and talk to them about what you are looking for and how you will be using the property.  There are different types of homes for different investments.  Call and interview a few Realtors but work with ONE, the time spent working one on one with a professional99+ will benefit you by having a trusted adviser that has spent the time getting on the same page as you and your needs.  Much better then working with a number of Realtors filling your in-box full of homes hoping you pick one, any one. 

2.  Banks are smart about listing homes - Many banks use the list price as a marketing tool to generate interest in their properties and sell them at or even higher then the offered price, remember list price is not value.  in today's real estate market the best strategy is to list a home at or very close to value and let the market and 10,000 Realtors and the exposure of the MLS to get the highest and best offer.  Banks will wait 30 to 45 days and if there are no attractive offers reduce the price 3 to 5% and wait.  What they will not do is accept low ball offers that do not reflect today's market values.  Your Realtor should be doing a home evaluation based on comparable sales the past 90 days to give you a very good idea of where the value.

3.  Make an attractive offer - With so many buyers looking to purchase these distressed Dr Phillips homes don't over look some of these smallest details can be the difference in the bank accepting your offer over another buyer. 

• Write offer on "As Is" with right to inspect.
• Inspection period no more then 5 days
• Closing date 30 to 45 days (less is best)
• If purchasing as a Corporation or LLC include Articles of incorporation
• If the value is right at list price adding another $100 can be the difference
• Cash offers include proof of funds in US dollars dated no more then 30 days old
• Contingent on financing include preapproval dated no more then 30 days
• If the property is hot and you feel comfortable you can also state a non refundable escrow

4.  Read the Bank addendum carefully- After an accepted offer banks will have addendums for a buyer to sign.  Read them over carefully, you can expect as a buyer to pay for utilities to be turned on for all inspections and or pay state documentation stamps or re keying.  Know all your cost before signing.

5  Hope for the Best and prepare for the Worst - Remember most bank owned properties are sold "as is".  Many home owners leading up to the foreclosure have neglected maintenance and don't be surprised if you see stripped appliances.  Include all of the cost to bring the home up to date and add this onto the market value of the home, not the list price to deterime if it's a good deal.  Expect some delays.  Many banks in this market have departments that work exclusively with REO's (Real Estate Owned) homes and are sometimes back-upped for days or weeks. 

Bank owned properties are not for everyone but if you are looking for a great deal they can be some of the best valued propertis availabe.