AgentIndustry News

Foreclosure home-hunting strategies

Perspective: Learn before you leap
Published on Dec 16, 2008

By JAMES J. SACCACIO One of the most common questions asked of real estate professionals these days is some variation of the following: "Is now a good time to buy a foreclosure?" I get this question routinely, too, and my short answer is simply to "check with your local real estate agent." I say that because the most accurate answer to the question is based on local market conditions and the individual financial status of the prospective buyers -- two pieces of information best determined by a good local real estate agent. Unfortunately, some agents are still steering their clients away from foreclosures simply because those agents don't understand how foreclosures work. The free-market metronome tends to swing to extremes before settling back into a reasonable rhythm. What we saw over the past few years in many parts of the country was a real estate market ratcheted up to an unsustainable rate. Homes were far overvalued and overpriced. Builders scrambled...