Whether you are an investor in Denver Colorado real estate or first-time homebuyer, in 2009 government incentives are in place to give you a financial head start. However, there are important questions to ask for anyone who seeks to add to the benefits of buying foreclosed real estate in Denver this year.
Foreclosed homes in the greater Denver region are a different ball of yarn. It is critical to work with a lender and a Realtor® who has experience with bank foreclosures. That is because there are so many critical details. For instance, property ownership changes when a bank forecloses a parcel of Denver property. When properties have changed ownership in the past year, specific Flipping Guidelines affect the resale.
Eyeing a foreclosed property is not a rush project. Generally, the purchase of foreclosed properties in Denver takes longer than normal transactions do. The bank may take one day or 90 days to decide to accept or reject an offer. Most of the time, once a contract is accepted, a foreclosed property sale takes at least three or four more weeks to close.
With several parties involved, it takes quite an effort to ensure an easy closing. First off, the lender must send closing papers to the title company at least 72 hours in advance. Other players on the chessboard include the appraiser, surveyor, inspector, flood certification company, insurance company, tax certifier, processer, underwriter, home warranty company, the title company, the escrow officer, and the bank—to name a few.
Buyers who have the time to deal with a foreclosure transaction must understand price negotiation. A good Realtor can verify upfront any limitations that the bank may be imposing. Realize that the bank most likely has already reduced the price of the property below market value. Just as important, other buyers are also looking for good deals and the bank may have several offers. Some banks will pay the buyer’s closing costs, possibly by raising the price, others will not.
Repairs, inspections, and appraisals are imperative to accessing the correct value of the property. Inspections ensure that major systems are working. That will include heating, air conditioning, foundation, roof, and plumbing. Buyers are smart to hire their own inspectors to be sure that the major systems are in good condition. Before an appraisal or inspection, it is important for the buyer to be certain that all of the utilities and water are on in order to test their functioning. Banks who hold foreclosed properties will not do repairs.
For more information about real estate in the greater metro area, including farms and horse properties, call Michael Paul of Realty Oasis at (303) 268-6052.
