If you are looking for quality foreclosed Fargo, ND homes, you can find them at foreclosure auctions and listed with local Realtors. According to data released by RealtyTrac, there are two foreclosure auction properties available and 77 bank owned REO properties. According to Trulia, there are 633 resale and new homes available for sale in Fargo with 28 homes in the pre-foreclosure stage. The average list price for a Fargo home was $195,365 as of the week ending August 3, 2011, and represents an increase of 0.4%, or $762 from the prior week. Two popular Fargo neighborhoods are Hawthorne and Roosevelt, with average list prices of $206,542 and $128,487, respectively. First time buyers and investors are looking in other hot Fargo neighborhoods such as Hawthorne, Roosevelt, Woodhaven, Horace Mann, Clara Barton, Anderson Park, Westgate, and Lincoln for foreclosure properties.
Finding Foreclosed Homes
In fact one of the best ways to find foreclosed Fargo homes is to work with a local Realtor because they are familiar with the inventory in their area and banks always list their REO properties with local Realtors. REO’s are foreclosed homes that did not sell at the foreclosure auction so the bank buys them back and offers them for resale. They offer buyers an opportunity to purchase a quality home at a deep discount, and are safer investments because liens have already been paid and you can buy title insurance on them. Buyers can obtain financing on REO homes as well. The Realtor can help you negotiate the purchase price with the bank so you obtain the best deal for your foreclosure home.
You can find a list of foreclosed homes that are coming up for auction through the county courthouse, the local newspaper or by driving by neighborhoods and looking for foreclosure sale signs posted at the property. Some online auctions cooperate with local Realtors by paying them a brokerage fee of 1% of the winning bid if their client’s bid is selected provided they register their buyer at least 24 to 48 hours prior to the auction. Auction properties are generally sold for less than REO’s, but the new buyer is responsible for evicting any prior owner or tenant residing at the property, paying off liens and you cannot obtain title insurance on the property. Most auctions require the buyer to pay for the home in cash.
Inspections and Repairs
A majority of REO properties need work. You should always have an inspection to make sure you find out the condition of the property before you purchase it. This way, if the repairs are too costly you can decide to look for another foreclosure property. Foreclosure auction and REO properties are sold as is. If you are first time home buyer or new investor, you may want to stay away from homes that need major system repairs and need structural repairs because those items can cost a bundle and cut into your profit margin. Try to find a home that just needs some cosmetic fixing up such as painting, changing flooring and maybe redoing kitchens and baths. If you can do the work yourself, you can save a lot of money on the repairs.
With affordable Fargo housing right now, it’s a great time to buy a home to live in or to rent it out. Quality rentals in good Fargo school systems are always in high demand. Buyers should take advantage of such favorable buying conditions while they last. With historic low interest rates and abundant inventory, buyers and investors have been competing for foreclosure homes bargains. So if you find a foreclosed home that meets your criteria and price range, you should grab it now.