The first step in buying repossessed real estate is to do a market search and find out what is available. In ordinary times most properties are marketed through professional brokers, becoming part of the general inventory of listings. But in times like this when foreclosures are above normal a number of extraordinary methods are being used to market properties. Here are some of the sources of information you might want to look for:
1. Brokers. Many owners of REO still market properties through brokerage firms even though the inventory is large. In most cases brokers operate under exclusive listings, which allow them to aggressively market properties. The homes also become part of the local multiple listing service, or MLS, which broadens the market.
2. Ads. Many properties are featured in classified ads in local newspapers. If you can spot repossess homes by the identification of the seller, such as HUD homes. Such ads may have been placed by a broker or directly by the property owner. In most cases, a contact is provided for more information on the properties and bidding process.
3. Lists. HUD, FNMA and RTC have compiled lists of properties. The list usually provide only the basic information and no sales pitch such as may be found in classified ads. However, these lists cover a large number of properties and allow you to scream by price, location and building type.
4. Auctions. Property holders Resort to auctions when inventories are large and the costs of holding the properties exceed the prospects of their value increasing. Professional auctioneers advertise several weeks before holding sale so be sure to check ads in local newspapers. Often sales brochures are also available which will list the properties being sold.
5. Signs. Foreclosures and relocation company owned properties are frequently identified by for sale signs planted in front yards. These are easily identified by walking or driving through the neighborhoods where you are considering purchasing a home.
6. Additional methods. Accumulation of repossessed inventory has inspired some unusual techniques for getting rid of it. As an example bankers have appeared its sales conventions in an effort to attract buyers of repossessed property. Special television shows have been devised to induce sales. And in current times of high foreclosure rates any number of strange or unorthodox marketing techniques are being employed to ensure that foreclosed homes reached the largest audience possible. One thing to mention here is that, as a buyer, you should be very wary of deals that seemed too good to be true coming from an unorthodox source.
Hopefully these methods will help you to find a repossessed property more easily in order to make your purchase.