Oklahoma City is a great place to find liquidation property bargains. In fact, according to Trulia.com, there are approximately 1,542 homes in either pre-foreclosure, auction or bank owned stages of the foreclosure process in Oklahoma City. If you are looking for homes in popular areas such as Quail Creek and Mesta Park, you may even be lucky enough to find a foreclosure bargain REO or short sale. There are also other great bargains in surrounding neighborhoods, including Woodland Park, The Greens, Park Estates North, Britton, Embassy West that investors/buyers should take advantage of now.
Where to Find Properties?
One of the best ways to find liquidation properties is to check the local newspaper and/or the Internet for foreclosure auctions. Properties that are offered at auctions are sold as is and title insurance is not available. The new buyer is responsible for paying off any liens on the properties. You will need cash to purchase a foreclosure auction property. It is suggested that you you do all your due diligence prior to making a bid at the public auction so you are knowledgeable about area prices. Also, you may want to bring someone with you that has bid on auction properties before because the pace is quick and you don’t want to make any mistakes overbidding because you got caught up in the excitement of a bidding war.
REO’s and Short Sales
You may also want to drive by specific neighborhoods you are interested in looking for foreclosure signs and short sales. Working with local Realtor is also suggested because local Realtors are familiar with the inventory in the area. Also, banks list their REO inventory with local Realtors, who advertise the properties in the MLS. Working with a Realtor also saves buyers/investors time researching properties and sold prices because the Realtor will provide you with all the information on currently listed and recently sold comparable properties. Also, banks require that potential buyers make offers on their REO listings through a Realtor. You can choose to work with your own buyer’s agent or use the listing agent to make your offer.
Some buyers prefer to purchase REO’s or short sales because they offer the buyer/investor less risk. Both REO’s and short sales can be inspected, and you can purchase title insurance. Also, you do not have worry about paying off any liens on the property. REO’s and short sales are also sold in an as is condition. You can obtain your own financing, although cash buyers have an edge. Banks and short sale sellers want to know that you are qualified to purchase their property and close the transaction. If you are getting financing, make sure you have it all lined up and are ready to close quickly.
What to Look for When Purchasing Liquidated Properties?
While many liquidated properties are great bargains, it is important for investors/buyers to do their due diligence to investigate property prices to make sure you don’t overpay for property, especially when you are bidding at a foreclosure auction. Things move fast at auctions and it is easy to get caught up in the excitement. Here are a few tips to help you:
- Check recently sold prices in the area.
- Drive by the house if you can to check out the neighborhood and whether the home is occupied or vacant.
- Have the title company check for liens.
- Check zoning and make sure you can use the property the way you are intending to use it
- Inspect the property whenever possible.
- Purchase homes that need cosmetic repairs vs. major system repairs because replacing major systems can be expensive. Stay away from structural damage.
- Have your financing or cash available.
- Work with a local Realtor when purchasing a short sale or REO.
- Consult with a local attorney about foreclosure real estate laws.
By doing your home work first and educated yourself about home prices and local real estate and zoning laws, you will save yourself a lot of money and time. This way you won’t regret buying the wrong property and paying for your mistakes down the road.
Owning liquidated property is certainly a way to increase your portfolio and accumulate long term investments that will yield you a high rate of return on your money. Being cautious and taking the time to do research will pay off in the long run. With affordable prices and low historic interest rates right now, it is a perfect time to invest in Oklahoma City liquidated real estate. Whether you are purchasing the property for investment or to live in, you know you will be getting a great bargain property with built in equity.