1. Understand that the purchase process for a foreclosure in Austin is different.
In traditional Texas real estate transactions, Austin homebuyers work directly with the property sellers and their agents. Homebuyers will typically present an offer directly to the seller and their agents to purchase the property.
When homebuyers are planning to purchase a foreclosure property in Austin, they are not dealing with a traditional seller. Foreclosure properties have been repossessed by a bank or other organization. These companies now own the property and are the entities that homebuyers will interact with when making an offer.
2. Work with real estate agents in Austin who have foreclosure experience.
It is extremely helpful to have an agent who is familiar with foreclosures and has experience closing these nuanced deals. An experienced agent is an invaluable resource for finding foreclosed Austin properties, evaluating price, and navigating the buying process expeditiously. These properties in Austin are not the same as those in typical real estate transactions, and having an expert on the homebuyer’s side can make a huge difference.
3. Get pre-approved early.
Homebuyers will need to get pre-approved early if they are planning to use a mortgage to help cover the cost of their foreclosure purchase. Getting pre-approved is important for homebuyers to better understand what monthly mortgage payment they are actually comfortable paying, and what price range they should be shopping for.
Foreclosure properties also tend to move quickly in Austin’s hot market. Having a pre-approval letter from a local and reputable lender will strengthen the homebuyer’s offers, setting them apart from every other bidder in the Austin market.
4. Do market research.
Foreclosure properties in Austin move so quickly on the market because they tend to be priced below market value. Homebuyers should be prepared to purchase at a similarly speedy pace.
Market research is important because it gives homebuyers a sense of what prices similar properties have been selling at and helps them spot a good deal.
5. Utilize real estate websites and REO searches.
Nearly all major real estate listing sites have foreclosure properties listed. Austin foreclosures are usually listed online under the category REO (real estate owned) property. REO is used to categorize properties that have been repossessed by banks, government agencies, or other companies.
Starting the foreclosure search by researching listings on multiple sites is a good way to monitor all desired locations for an Austin foreclosure deal.
This blog covers the very basics of foreclosure purchases in Austin. If you are thinking about purchasing a foreclosure in Austin or have additional questions, you can reach us here, by phone at (855) 855-4491, or by email at [email protected].
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