Free Foreclosure Listings

Can You Find Good Foreclosed Homes on Free Lists?

Locating a reputable free list of foreclose homes is challenging. Real estate investors earn the bulk of their income by purchasing homes cheap and selling them for a profit. Thus, foreclosed properties are in high demand. If buying a bank-owned or foreclosed home, you can expect to save 20 to 50%. The problem lies in accessing a list of foreclosed properties. Several websites offer listings, however, a subscription fee is required. While some websites will advertise free listings, there are advantages and disadvantages to these types of listing services.

Free Foreclosed Listings Come with a Price.

If searching for a free online listing of foreclosed homes, you will come across several websites offering free information. However, the information provided is usually on a trial basis. The majority of listing services involve a subscription fee before you can search for a home.

Nonetheless, many services are agreeable to a free trial. Of course, before you can take advantage of the free trial, you must provide the listing service with your credit card information. At the conclusion of the free trial, they will conveniently bill your credit card, and will continue to do so until you cancel.

Advantages of Free Foreclosed Listings

Although free foreclosed listings are not easily accessible, once you locate a good list, you have the opportunity to purchase an inexpensive home. The best way to find a free listing is through a realtor website. When banks work with realtors to get properties sold, the real estate agent is given permission to list the homes on their personal or company site. Moreover, some states will compile a free listing of foreclosed homes throughout a region..

Free listings are ideal because you can find homes for as little as $10,000. Furthermore, choosing a home from a free foreclosed listing allows you to shop for a home without leaving your computer. Free foreclosed listings include all pertinent information about the home. For example, property descriptions will point out the home’s square footage, number of bedrooms, bathroom, additional features, sale price, condition, etc.

Negative Aspect of Free Foreclosed Listings

Unfortunately, a large number of free foreclosed listings are a waste of time. Because the information is readily available to anyone, most of the properties are contracted before you receive the list. Real estate investors are always in search of free listings. Hence, they generally have the first pick of cheap properties. Moreover, free listings are not updated on a regular basis. If you are serious about buying a foreclosed home, spending a few bucks a month for an accurate and useful list will provide the best results.

Carrie Reeder is the owner of ABC Loan Guide, an informational website about loans and bad credit mortgage loans.

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Real Estate Investors Buying Formula

Strategies for buying investment properties don’t vary much across different type of properties. Basically paying the least amount you can to insure a nice profit when you sell or refinance. Here are some basic formulas that work every where and a new twist that your real estate agent or title company can help you with

1. Determine the best use and highest market value of the property in excellent condition. This research can be done by your real estate agent (comparable Market Analysis) or by your expert knowledge (experience) in the marketplace (you should know your market inside-out and not by guessing)

2. Estimate cost of repairs use contractor estimates (you should have a team of experienced contractors) that you can trust and depend on. Your experience will help you quickly estimate ball park numbers on most any project.

3. Calculate the carrying costs of the property. Purchase costs, taxes, insurance, Title, attorney, appraisal, utilities, financing (points, interest), selling costs (commissions), advertising (for tenants or to sell), overhead expenses and may be some miscellaneous costs not listed. On a quick paint and replace carpet the work may take 2 weeks but you should plan on 2 to 3 months holding time. Larger projects may take a month or two to complete you may want to consider 4 to 6 months carrying costs.

4. What’s your profit do you want to make 10% to 20% on the deal not a bad profit but 10% on a $35,000 deal is only $3,500 for two months work and headaches. You may want to consider paying yourself a minimum $20,000 to $25,000 per deal this can guarantee a good profit at the end of every transaction.

5. Offer price is the highest market value less repairs, carrying costs and profit. This is the most you will pay for the property you want to start somewhere lower, some where a lot lower, an offer somewhere lower like your agent will be ashamed to present your offer.

6. A new twist to the formula, there are a tremendous amount of bank owned properties on the market today and there be more tomorrow. When a bank takes over a property they list it for sale with a real estate broker who prices it at the market value it usually sells somewhat less than that. But what did the bank actually pay for the property or what was the mortgage balance when they took it over. Many times what the bank has in the property is much less than the listed price

Example 1:

123 Main St - highest market value $250,000, brokers listing price $240,000, bank costs through foreclosure $165,000. In this example the property needs only minor cosmetic work and can be turned over quickly so you offer $210,000 and will make a nice $25,000 profit. But what about the other $45,000?.

Example 2:

729 New St – highest market value $195,000, brokers listing price $190,000, bank costs through foreclosure $102,000. This is another property with minor repairs; you offer $98,000 and close at $102,000 (depending on the marketplace you may close a little higher). Using our normal formula we would have offered $140,000 to close at $145,000 a difference in your pocket of +$43,000

To the bankers it's a numbers game they are building a backlog of properties to move so you may have some good opportunities in your area. Work with your real estate agent or title company do a little more research into what all parties have in the property and you may make some bonus money on top of your planned profit

Bill Carey with over 30 years in real estate sales, investments, and home building offers a unique perspective to the buying and selling process of residential real estate for F*R*E*E consumer information and reports log on to http://www.CharlotteNCExecutiveHomes.com and see "Insider Real Estate Secrets Revealed" ...a must-read for Home-Owners and Renters! It's a F*R*E*E 12-lesson e-course covering more than 20 topics exposing the realities behind buying and selling a home. It Could Make(or Save) You Thousands of Dollars.

See http://www.BillCareyRealtor.com and sign up for our monthly e-newsletter with tips for buyers, sellers, home owners and soon to be home owners..

Baltimore Real Estate

Search Baltimore, MD MLS listings of Baltimore homes for sale. If you are buying a home in Baltimore Maryland you should get mortgage preapproval or prequalified for a mortgage prior to searching Baltimore real estate listings of homes for sale. This will help save you time by limiting your home buying search to only Baltimore real estate you can afford.