Can you still get a deal on a foreclosure?

Can you still get a deal on a foreclosure home? I get that question a lot. Despite what a lot of late night infomercials let you believe (as long as you let them charge your credit card!) finding a deal is work, it's a lot of work. No don't get me wrong there is a lot of money to be made buying rehabbing and selling foreclosure homes. You just have to do your home work first. Most of all you have to know your numbers and don't over improve. Remember its an investment first. Let me first get the negatives out of the way, and point out a few of the obstacles you are up against. 1) Clueless people, who are better off with CD's at the local bank. They have bid on 54 other homes before this one that you are bidding on and just want a home. And bid with their emotions, not their wallet. 2) Owner occupants, that are willing to pay retail for a home since they plan on living in the property for a long time, price is not that much of an issue. 3) Investors with a 5-7 year time frame. There are investors some with Wall Street money, they bid on properties sight unseen. They pay above retail, all cash and only care about current price, a rental cash flow is more important. There are hoping the home will sell for more money in 5-7 years, till then, they make their money off rental income. 4) Investors that bid crazy money just to get the home off the market. Later they may try to get the price down by saying there are issues with the property they didn't know about. I can go on and on, but like to keep my post short and sweet. Here are a few tips: Unlike buying a car off Craigslist, were you start below what you are willing to pay. In the Foreclosure game, successful bidders generally have to bid at or above asking price. There are exceptions to the rule: the home is in need of major rehab, and was not price in accordance. The home has been on the market for a very long time. Timing, I have always been a fan of bidding on items (eBay or Foreclosure homes) around major holidays. People are distracted and picking up relative at the airport a day before Thanksgiving. Terms, the Bank that owns the property may prefer to sell a home to a cash buyer $5,000 below the next buyer if that buyer needs an FHA mortgage and the seller to pay some of the closing cost. The longer the property has been on the market, the better for that strategy. Location, chances of winning a bid on a Foreclosure home that is in a "Hot" area, in great shape for a price that allows you to flip or rent, are not really that high. The more negatives a home has about it the better, or greater chance to win a bid. In the past few years Banks and the asset manager (helping Banks market the homes for sale) have climbed up the learning curve. First Banks are holding back properties for sale, there are several reasons. One being low inventory increases prices. Banks have also started rehabbing homes to a degree. I have seen many a Bank owned home with the same color carpet and paint as the last 35 Bank owned homes. I call the color foreclosure beige. Fannie Mae is also offering HomePath properties. On a HomePath property, if the buyer uses a HomePath loan, there are no appraisal requirements and no Mortgage Insurance. But like many things in life there is a price for free stuff. The Mortgage rates are higher, and the home may be priced above market value. I hope this information will assist you in your home search. If you or a friend or family member is the Market to buy or sell in Palm Beach County. Please feel free to introduce them to me. Karl R Schulz Friday Realty LLC www.FridayRe.com 1003karl@comcast.net phone 561-379-Seven-Eight-Eight-One. Sincerely, Karl R Schulz