This is the fifth in a series of 10 blogs I am posting each Wednesday on buying foreclosed property. If you’d like to read any of the previous entries, you can do so by clicking here.
The number of people unable to fulfill their mortgage obligation is at an all-time high, making purchasing a home at a reasonable price easier than ever. Here are this week’s tips on how to go about purchasing a foreclosed property.
This week, we are taking a look at finding a Realtor who deals in foreclosed properties.
Find Candidates:
Ask those you know well – particularly those who live in the area in which you’d like to move – 1) who their Realtor is/was, 2) whether or not they keep in touch with their Realtor, 3) whether or not they would do business with this Realtor in the future, and 4) how their overall transaction went.
Begin with Realtors who have been given top-notch reviews by previous clients; a referral will automatically be perceived by the Realtor as being more serious, qualified, and credible. If you don’t know anyone who lives in the area to which you are moving, you might want to check online for reviews. You might also attend a homebuying seminar being held by a local Realtor; this will give you the opportunity to see the Realtor in action, begin to assess the fit between your personality and theirs as well as gauge their overall comfort level with the real estate material they are presenting and their level of professionalism.
Take a Look:
First, go to your state’s Commission or Department of Real Estate website; type in the name of the Realtor into the license status check box to ensure the Realtor’s license is active and there is no history of discipline.
Next, visit the websites of those to whom you have been referred to get a feel for what their priorities seem to be (business philosophy, technology, etc.).
Call the Realtor and mention the name of the person who referred you; let him or her know you are looking for a foreclosed property to purchase.
Make an appointment to meet at their office; if this is an inconvenient location for you, suggest an area where you will be able to have a private, unhurried meeting (coffee shop, restaurant, etc.). Only make plans to meet with a few of the Realtors for whom you’ve received positive reviews; you can always meet with more if none are to your liking.
Consultation:
The Realtor should have a set agenda/presentation for your consultation during which you will be able to ask questions that will help you assess whether or not he or she meets your preferences and requirements. Providing him or her with a complete Homebuying Wants and Needs Checklist will help facilitate this process immensely. Here are a few that can help get you started:
- How much of your business is by referral?
- Can you refer me to a mortgage broker?
- What areas do you work in?
- How much of your business is working for buyers?
- How long does it usually take for a new buyer client of yours to find their property?
After you’ve spoken with the Realtor, you should have a good idea of whether or not he or she is professional and knowledgeable, and if you can trust him or her with confidence. Once you’ve made the determination that you would like to work with a particular Realtor, you will need to have a “loyalty talk” to discuss working exclusively with him or her.
