This is Part One of a series I am writing that tracks my clients as they purchase a home in foreclosure in Coconut Grove.
I have to admit that 6 months ago I was weary to have any clients of mine make an offer on a foreclosure property. There are so many obstacles and unknowns for the buyers that I used to shy away from bank-owned homes. However, since the foreclosure market in Coconut Grove is picking up steam and there really are some GREAT buys out there, it would be against my clients best interest not to consider them. So on that note….
Some friends of mine were looking to purchase their first home as a married couple. They are currently renting on a month to month basis in Coconut Grove and would really like to stay in the area. After viewing several homes within their price range, we came across a foreclosure property in the Grove that gave them much more for their money than other homes we previewed. There was more land, more bedrooms and all around more space. The downside was that the house was completely uninhabitable on the inside. All major appliances were gone, the toilets had been ripped out from the floor, bathrooms, kitchens and floors all needed replaced. They were looking at approximately $100,000 to $150,000 worth of work.
Since they are in the construction business, they weren’t scared of the challenge.
- We drew up the offer.
- After 9 days the bank presented a counter offer which we accepted.
- We sent the signed accepted agreement, we have not heard back from the bank for 10 days.
Lesson learned: If you make an offer on a foreclosed property, you must be prepared to wait.
And wait, and wait and wait.