Getting the best price is the number one goal of foreclosure buyers. First, let’s address one of the biggest myths of real estate -
“If I work with the listing agent, I’ll be able to get a lower price.”
Although not unique to buying REO’s, the risks involved in this approach magnify exponentially with buying a bank-owned foreclosure. The listing agent in all transactions represents the seller. Even if you agree to a dual agency representation, the agent is legally obligated to protect the seller’s best interest. Think about ‘War of the Roses’ – if you were going through a divorce, would you want the same attorney?
Okay, now that we’ve had our movie minute – let’s get back to the Kauai foreclosure market. When a bank-owned foreclosure is listed, there is no sellers disclosure. It’s an “As-Is” purchase. In addition, lenders use their own contract drafted by teams of lawyers to protect them from liabilities. Who’s representing you?
As a buyer, how are you going to find out what you need to know about the property? Your buyers agent needs to be part realtor, part detective on your behalf.
For instance, this new luxury foreclosure listing was released this week – located in Kalihiwai Ridge area of Kauai’s north shore;
From viewing the listing would you know that the property was vacant while unfinished for over a year? Is that a concern, maybe – maybe not. But it’s definitely information that you as a buyer should know.
Here’s a video walk-through of the property prior to the completion of the finishing details mentioned in the listing – while it was marketed as a short sale.
Working with our foreclosure buyers, we not only investigate the property through the normal channels, such as County Planning Department, previous listing details, Public Health records for the septic system, etc – but through our personal network with local builders, contractors and agents we often find the property’s untold story for you.
Now that’s some power for negotiating….as well as important protection for you.
For more information or to request a showing, please feel free to contact us at any time.