Purchasing an Arizona foreclosure can be a long and arduous process. With the housing market on the upswing, getting through the buying process has become increasingly difficult due to added interest from investors and bargain buyers. In addition, a number of specific contract requirements are employed in foreclosure purchases, which not found in conventional home sales. In the following entry, we will seek to provide you with a few tips and tricks to help make your foreclosure purchase as quick and painless as possible.
Step 1 – Contact various real estate agents to find out about their level of experience in dealing with foreclosures. Inquire as to how many foreclosure transactions they have completed and how close their accepted offers were to the asking price.
Step 2 – Get approved! Get in touch with one of our lenders to determine how much you can get. Call ahead for pre-approval and shop around for the best rate and amount. Once you’ve found acceptable terms, it’s time to schedule a face-to-face meeting to obtain hard approval. Organize your past tax records, pay stubs and other documentation to prove your worth.
Step 3 – Select specific areas where you are interested in purchasing. Areas such as Maricopa, Surprise and Queen Creek have a much higher number of foreclosures that neighborhoods that are more centrally located. Due to the high number of available properties in these areas, you are likely to get a much larger, newer property for your money. Make a request for a comparative market analysis before you submit any offer to help ensure a good price.
Step 4 – Get ready to move! Many of these properties often have numerous, above-list-price offers. If you see a listing that interests you, avoid waiting for a more convenient time to pay a visit. In many cases, the property will be gone before you know it.
Step 5 – Submit your offer! Foreclosures typically take a little longer to obtain approval than owner-occupied properties. Once your offer is approved, you will need to complete a second set of documents… which also require approval. Once this second set is signed, you’re golden, Cowboy!
Step 6 – Make certain to get the most out of your inspection period. Locate and hire a professional home inspector to complete a full-scale inspection of the property. Visit the neighborhood during different periods of the day to determine the actual conditions.
Step 7 – Close – Close – CLOSE! Bring along a certified check to take care of the down payment and sign your closing documents in front of a certified title authority. Once the documents are recorded, you will receive your keys and be free to move!