Summit County Real Estate Blog

Here is the complete is of the top tips for purchasing Breckenridge Foreclosures in the Breckenridge Real Estate Market.  For more information, contact us at Summit Mountain Home.

1.  Find potential properties in Foreclosure.

The internet has made this easier than ever.  There are services where, for a monthly fee, you can track foreclosure and pre-foreclosure properties.  While the largest bargains can be found in a market where there is a high level of distressed properties, you can find foreclosures in strong markets such as Breckenridge.  You just have to be careful, because properties move fast here.  If your information is outdated, then you are out of luck.  We at Summit Mountain Home have the most up to date information on foreclosures and pre-foreclosures.  If you are a savvy investor looking for your best opportunity, then you should work with our experiences foreclosure experts here at Summit Mountain Home.

2.  Know values of homes in the area you are interested in purchasing.

Prices are constantly in a state of flux and their are always circumstances surrounding each property that may further influence pricing.  Again, your best bet is to work with our expert realtors that know area pricing.  We are in touch with our market everyday.

3.  Financing should be lined up BEFORE you find the home of your dreams.

In general, it is always a good idea to be pre-approved.  A seller will be much more motivated to deal with a pre-approved buyer.  But in the foreclosure market, it is even more critical.  You need to be able to move quickly and pounce when the opportunity presents itself.  In addition, if there is more than one bidder, the pre-approved bidder will have a distinct advantage in negotiations.  Summit Mountain Home has finance / mortgage experts that we work with every day to put you ahead of the pack.  In addition, you may want to get pre-approved by the lender that owns the property.

4. Home Inspections

Again, home inspections are always a good idea.  But with Breckenridge foreclosures, it is even more important.  When an owner is financially distressed, they will often put off maintenance issues because of lack of available funds.  You want to know what the potential cost estimates are going to be for repairs, so you can consider them in your offer.  If you find out about them after the deal is closed, the problem is now yours.

5.  Negotiations.

We at Summit Mountain Home are here to represent our client.  However, being experts in negotiation, we like to practice something we call “win-win” negotiations.  We want to win for our client, but convince the seller that they are winning as well.  Negotiations seem to go much smoother when an experienced realtor is able to sway the seller that this buyer is offering them a deal where they are winning.

6.  Property history

Ask our Breckenridge Real Estate Expert Realtors to find out the bank’s purchase price on the Trustee’s Deed or Sheriff’s Deed. Generally, it is noted on the document itself, which you can get from the tax rolls or a title company. Compare that price to the price the bank is asking.

Also, find out the amount of loans that were once secured to the property.   The difference between the original mortgage balance(s) and the foreclosure sale price is the amount the bank will accept.

7.  Ask about the Number of Offers on the Property

If there are no offers on the Breckenridge Real Estate Foreclosure, you can probably offer less than list price and get your offer accepted. However, if there are more than a couple of  offers, you will most likely need to offer above the asking price.

If there are a couple of dozen offers, note that some of those offers might be all cash. Banks are attracted to all cash deals. If you are obtaining financing, then you may need to increase the price on your offer to be competitive with cash deals at a lower price.

8. Shorten the Inspection Period

The offerer who offers a shorter inspection period will be deemed as the more serious bidder.

9.  Offer to split fees with the bank.

The bank will often look at the offer as more attractive that is willing to split transfer and escrow fees.

10.  Have an appraisal done.

Make sure that you have an appraisal done and that at a minimum the property appraises at or above your offer.  If it does not appraise appropriately, you do have options at this point to get out of the deal if structured properly.  You should use an foreclosure expert such as Summit Mountain Home when writing your offer.