To be a Savvy Buyer You Have to Know the Foreclosure Market

Right now today there are currently 30 plus active foreclosures for sale in Lakeville, MN.  This may seem like a lot to choose from but it is not compared to just s few years ago.  The trend seems to be moving towards short sales or pre-foreclosures for the banks to solve their problems. You have to know as a buyer what a good deal is to become a savvy buyer and get the best deal for you and your family.

How do you do this?  You start by reviewing the foreclosures that are available in the area you are looking.  This is a good starting point because what you will find is just because it says foreclosure does not mean it is a good deal. The foreclosures in Lakeville,MN as well as surrounding areas have pushed regular residential homes for sale down closer in price to compete with them and that has opened up a huge segment of homes for sale that are really being ignored at times by home buyers.

There are some incredible deals out there right now with tradition sellers that I would say exceed the deals on some of the foreclosures.  How great of a deal is the home if you have to put $50,000 into upgrades and repairs?  Plus where does that money come from after you buy the home?  Most likely an equity line of credit so you are in essence ending up with a second mortgage on the house plus all of the work ahead of you to get it to where you want it to be.

Consider comparing a home that has all of it already done for you.  The rates on mortgages are so good right now you may be able to get a lot more for your money on that regular residential purchase and lock in that great 30 year fixed rate.

It is worth knowing the entire housing market in the areas you are looking even if you have no interest in buying a foreclosure.  The more you know the better prepared you are to jump on that deal before someone else sees it.

Tom Sommers/Edina Realty