Caveat Emptor – Tips For Buying A Lakeland FL Foreclosure
Caveat Emptor is a well known phrase in the real estate profession and means “Buyer Beware”
1. Caveat Emptor – a latin phrase that dictionary.com describes as: “let the buyer beware: the principle that the seller of a product cannot be held responsible for its quality unless it is guaranteed in a warranty.”
Buying a foreclosed property in Lakeland FL or anywhere in the state of Florida is unlike a traditional home purchase. There is no seller’s disclosure, the home is being sold “as is”. The banks are making no repairs, you alone as a Lakeland home buyer are responsible for all the repairs. I have gone in plenty of foreclosed homes where the owner has taken out their anger on the home by punching holes in the walls. I have been in homes where the entire kitchen was removed. In some instances, light fixtures, door knobs and handles where gone even the bath tub. I know that this sounds crazy but it happens!
Some of the hidden items that is not visible to watch out for are issues with some of the more expensive components of a home such as heating, plumbing and electrical systems are all possible. Don’t be surprised if there has been vandalism by the previous home owner or other vandals either.
A thorough home inspection by a licensed inspector is a must. You may even want to have specialists there, for example: Heat & Air Specialist, licensed Electrician, licensed Roofer and a licensed termite inspector there – this will save your time and money.
While I have explained what I believe is the most important step in buying a Lakeland FL Foreclosure in getting a home inspection, the following tips are equally important, of course.
The next two tips should happen simultaneously before you start your house hunting:
2. If you are seeking financing, get a mortgage pre-approval first. Many foreclosed property on the market may require a potential buyer to obtain a mortgage pre-qualification through the lender that owns the Lakeland FL foreclosure. Although you are not required to go through their lender, they simply want to see if you are a qualified buyer.
3. Hire an experienced Real Estate Agent – one on one attention from a buyer’s agent is very important because an experienced buyer’s agent will keen in on your real estate needs during and after the Lakeland FL foreclosure buying process, give you undivided attention you deserve. Most REO agents who list bank-owned or foreclosed homes are inundated with listings they have a hard time keeping up and providing buyers with the one on one attention they need. More importantly, a buyer’s agent should provide you with comparable home sales and also study how long it will take to sell a home in a specific price range.
4. Researching the property’s title chain by an attorney or title company.
5. Making sure the lender (REO) has secured clear title.
6. Knowing the lender has done all due diligence, all paperwork completed to make the property available for sale.
Great Lakeland FL foreclosure deals are happening right now – check it out!
Copyright © 2011 By Petra Norris * Caveat Emptor – Tips For Buying A Lakeland FL Foreclosure*
For the month of March, Lakeland real estate market of short sales and bank-owned (REO) properties had a market share of 54%. There were a total of 126 properties sold in March, compared to 86 in February and 68 distressed Lakeland homes sold the year prior, according to Mid-Florida Regional MLS.
Currently there are a total of 1,945 Lakeland homes for sale and 566 Lakeland homes under contract (04/27/2010). By calculating total inventory, homes that are under contract which are included in my inventory share because these properties have not closed in which a buyer could walk away at any given time.
- Bank owned properties – Inventory share is 13.50%
- Short sale properties – Inventory share is 24.81%
The Graph below compares sold homes in all categories – Traditional Sales (None Distressed), Bank Owned Properties (REO) and Lakeland Short Sales
- Average days to contract for bank-owned properties are 51 days
- Average days to contract for other distressed properties are 179 days.
- 35 Short Sale Sold – average sold price $117,486 – median sold price $106,500
- 91 Bank-owned (REO) sold – average sold price $90,390 – median sold price $80,000
Distressed sales are scattered in all parts of Lakeland Florida as you can see from this graph below.
If you are interested in a specific area or neighborhood, feel free to contact me at petra@petranorris.com or click the search button below to search for distressed Lakeland properties.
Lakeland Florida Short Sale and Foreclosure Housing Report for February 2010
For the month of February, Lakeland real estate market of short sales and bank-owned (REO) properties had a market share of 56%. There were a total of 86 properties sold in February, compared to 88 in January and 63 distressed Lakeland homes sold the year prior, according to Mid-Florida Regional MLS.
The Graph below compares sold homes in all categories – Traditional Sales (None Distressed), Bank Owned Properties (REO) and Lakeland Short Sales
Currently there are a total of 1,946 Lakeland homes for sale and 543 Lakeland homes under contract (03/22/2010). By calculating total inventory, homes that are under contract are included in my inventory share because these properties have not closed in which a buyer could walk away at any given time.
- Bank owned properties – Inventory share is 14.34%
- Short sale properties – Inventory share is 24.69%
The Graph below compares sold homes in all categories – Traditional Sales (None Distressed), Bank Owned Properties (REO) and Lakeland Short Sales
- Average days to contract for bank-owned properties are 53 days
- Average days to contract for other distressed properties are 219 days.
15 Short Sale Sold – average sold price $110,213 – median sold price $75,000
71 Bank-owned (REO) sold – average sold price $81,017 – median sold price $70,000
Distressed sales are scattered in all parts of Lakeland Florida as you can see from this graph below.
If you are interested in a specific area or neighborhood, feel free to contact me at petra@petranorris.com or click the search button below.
