Foreclosures > Frisco TX Foreclosures Part 1

Home > Foreclosures > Frisco TX Foreclosures: So You Wanna Buy a Good Deal?

Frisco TX Foreclosures: So You Wanna Buy A Good Deal?
Learn the Real Scoop When Buying a "Good" Deal

Part 1: Laying The Ground Work

Want to buy a $325K home for $243K? A $456K home over $350K? Or a $273K home for $225K? I bet you do and so would I. These are some real numbers and clearly achievable in the greater Frisco TX market areas. Since 2008, EVERY home buyer I work with have called me to assist them in finding a "good" deal. They actually mean buying a foreclosure. Good - Where do we start?

Frisco TX foreclosures

Laying The Ground Work

First - Let me define the word, Foreclosure. When buyers *think of foreclosure, what they mean is a bank-owned property that had been acquired through the foreclosure process. In real estate, foreclosure is actually a legal process of "taking" over the property due to the borrower's inability to make payments. By the time the property reaches the hand of the bank/ lender, it has been foreclosed on.

What Goes On Behind The Scenes?

After the bank repossesses the property, it is assigned to an asset manager and goes through several internal procedures before it is available for sale in the marketplace. One of the procedures include market evaluation of the property. An appraisal is usually ordered for the property and an appraisal tell the bank how much the property is worth on the market. In some cases, the bank may order a BPO (Broker Price Opinion) from real estate brokers. Some banks order both appraisals and BPOs and some may choose to do one of them.

When a market value is established, and procedures are completed, the property comes on the market, available for sale to home buyers. This process may take 2 weeks, and some several months. By the time, the property comes on the market, how much was originally owed by the borrower/ previous homeowner becomes insignificant. By this time, the bank are not trying to recover what was owed, but to sell the property as quickly as possible based on the market value and property condition. Also, by this time, the bank had spent tenths of thousands of dollars to get the property back on the market including attorney fees, employee time, legal fees, etc. and the property condition has not changed.

How Does a Bank Price a Foreclosure?

This is the Million Dollar Question. It depends on the selling strategy of the bank and asset manager.

Some banks intentionally price it very low to attract multiple offers. Then, they hold it several days to wait for the multiple offers to come in before making a decision on which contract to accept. By this time, most buyers must submit their "highest and best" offer for evaluation. The key note here is the "highest" sales price may not always "win". The bank only cares about the "highest" net to them at the fastest closing time to the most "solid" buyer. If the bottom-line net is within a few thousand dollars, the buyer with the most "credible" circumstance may very well turn out to be the winner, even without netting the bank the highest.

These are the "deals" that most buyers think about when they want to purchase a "good" deal. Stay tuned for the next part of the series on what to expect when buying a "good" deal.

Then, there are properties that are listed at market price or slightly below the market. These are the properties that many buyers ignore because they are out there in search of a "good" deal (see above). Based on my research of Frisco TX foreclosures, this is a great opportunity for buyers to purchase but comes with less competition and ultimately, less stress. In these cases, banks are often just as motivated to sell quickly and are willing to negotiate a "good" offer for the buyers. All you have to do is start, and then massage the negotiation process.

Next, What to Expect when buying a foreclosure ?

Fill out the form below if you are ready to purchase a foreclosure or would like someone to get back to you with more information:

* Are required fields. Please be sure to check your email and phone number correctly.

View some pre-foreclosures/ short sales and banked-owned properties in Frisco, Plano and McKinney, Allen:

Related Articles:

FEATURED LISTINGS


	Meadow Hill Estates Frisco TX Home for Sale 4 bedrooms, 3 baths, approx 3071 sq. ft. $239,900

	3 bedroom + Study home in Hillcrest Estates 3 bedrooms, 2 baths, approx 1925 sq. ft. $179,900

	Panther Creek Estates Home for Sale 3 bedrooms, 2 baths, approx 1894 sq. ft. $178,900

	Hardwood Floor, Granite + More 4 bedrooms, 2 baths, approx 2795 sq. ft. $219,900
» More Listings

QUICK SEARCH

DAILY FIXED MORTGAGE RATES

*Rates subject to change without notice

No Down Payment No Closing Costs Loan available in North Texas

Check out the Affordability-based Zero Down Payment, Zero Closing Cost Loan Program

FRISCO TX HOMES OF THE WEEK

REAL ESTATE MARKET REPORTS

Check out the latest local real estate market reports of Frisco, Plano, McKinney, Allen, Little Elm & Prosper TX.

Be an INFORMED CONSUMER

Texas Information about Brokerage Services

Differences between Buyer Client & Customer

How Real Estate Agents Get Paid

Join Social Media Conversations In

Active Rain is the Top Real Estate Blogging Platform

About Loreena & 3:16 team REALTY

Loreena Yeo - Realtor(R) in Frisco TX | Broker
M.Sc, B.Sc
Direct (214) 783-2210
Fax (214) 231-9018
Email Me Here

>> Learn about Loreena

>> Learn about 3:16 team REALTY

>> Check out what our clients have to say on Zillow Review

3:16 team REALTY
is a proud Member
of Frisco TX Chamber of Commerce

Loreena Yeo is the broker of record of
3:16 team REALTY to practice real estate in Frisco & surrounding cities (State of Texas). Texas Real Estate Broker License Number #0507884.

CLIENT TESTIMONIALS

Read about what our satisfied clients have to say:

When she arrived for our appointment, we went through the normal preliminary procedures and all was fine. Then she surprised us. She had already done most of the work and only needed to take a few pictures of the inside and determine the price that we would be comfortable asking. She also spent a great deal of time explaining to us how the whole sales process work and what we could expect.

Eric & Tomoko Quere, Plano TX

Ultimately, Loreena introduced us to the house we bought--it was not one we found from our own hours of searching web listings--based on the the comments we had made while we visited these different homes. This is a testimony to her ability to listen well and to work proactively on our behalf.

Jenn & Glen Miller, Denton TX

We were completely impressed with Loreena. She helped us find and buy a home in Frisco. We have very high expectations from a realtor and she surpassed them. Knows her market extremely well, not just the technical market pricing data, but the nuances of all the neighborhoods as well. One of the most responsive and professional persons I've met in my entire business career.

Ruth & Jerry Meek, Frisco TX

I just want to thank you again for your help in selling our house. In this tough economy and market, I really didn't expect to get an offer. But you counseled me so well in pricing the house to sell and yet not letting me accept an offer that was too low. I believe we got the best deal we could have. I was so pleased and surprised with what we walked away with.

Sally & Phillip Barnard, Frisco TX


PRIVACY POLICY	TERMS OF USE	Real Estate Markets

		● Milford MA Real Estate

Frisco TX Foreclosures: So You Wanna Buy A Good Deal? Learn the Real Scoop When Buying a "Good" Deal

Part 1: Laying The Ground Work

Frisco TX Foreclosures: So You Wanna Buy A Good Deal?
Learn the Real Scoop When Buying a "Good" Deal