Foreclosures may be a goldmine for buyers

Foreclosures are an unfortunate sign of the times. I dont want to rehash all the ugly details. But the hundreds of short sales which have been on the market for 18 months now are converting to foreclosures, and the banks hold more property every day.

This is not what they want. They want money in their coffers.

As unpleasant as the whole scene is, at this point the deed is done. And given that the banks now hold all this property, many of them are putting up properties for sale at exceptionally low prices (vs. the current market) to sell them quickly. And selling quickly they are - the really good deals are gone WITHIN HOURS.

How good? How about a 1200 square foot, updated condo directly on the sands of Siesta Key - for $250K? At nearly 50% of current market value (which is low!) someone got a deal. And a beautiful place to relax and watch the sunsets.

Deals like that are appearing every day. But there are other, more veiled deals. What if the list price is at market value, as many of them are? Does that mean we can't get a deal?

Within reason, banks are accepting less. And without the variable of "hurting the sellers feelings", we can make lower offers. Sure, often the bank is loathe to go too far below list price. But there are a few things we can do to sweeten the offer and grab a fantastic deal.

1) Quick closings - as the saying goes, fast nickels are better than slow dimes. A lower price might fly if they can get it off their books in 2 weeks - they dont know how long they will have to hold it if they let you get away.

2) Cash offers - This goes hand in hand with the above. No mortgage necessary means a far better chance of closing, and a highly qualified buyer

3)No contingencies - often people make offers based on certain variables "if I can build a pool", or "if I agree to the HOA". By making a contract contingency free, it gives the buyer less chance to cancel the contract. This can be risky business however, especially as we get into the area of inspections, so we do recommend you only enter this realm with professional advice - say, with a Sarasota buyer agent?

For years you have been told it is "time to buy". With the foreclosures now on the market, this really is a good time. Don't miss your chance.