Tips for Buyers of Georgia Foreclosures

During 2008, foreclosure rates in Georgia nearly doubled, which translates into more properties on the market, some at bargain prices. Foreclosures are sold through a bidding process, an auction or through direct negotiation with a bank.

Use these tips to help buy a bank-owned property:

• Request that your realtor research the bank’s purchase price on the Trustee’s Deed or the Sheriff’s Deed for the property you are interested in. This will help you guarantee a good price.
• Research property values of similar homes in the neighborhood to ensure that you are receiving a fair price on the foreclosed property.
• Inspect the property for any structural and cosmetic damages before purchasing.
• Review previously sold foreclosed properties by the bank to compare pricing.
• Ask your realtor the number of offers the property has received to determine how competitive your offer needs to be.
• Reduce the inspection period to be viewed as a more serious buyer.
• Offer to split transfer and escrow fees with the bank instead of requesting the bank pay in full.
• Submit a pre-approval letter from your preferred lender along with a pre-approval letter from the bank that owns the property.
• Don’t ask the bank to pay for repairs until they have already accepted your offer. Most banks will not agree to pay during the offer stage, but will negotiate after they have accepted an offer.

These tips will help you evaluate a good deal and make a competitive offer so that your dream foreclosed property can be yours.