Gilbert Real Estate Blog
~ by Randy Hooker of Dreamcatcher Realty
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9th Thing You Should Know About Buying Foreclosures in Gilbert, Arizona
In the first eight installments of this series (1st Thing You Should Know About Buying Foreclosures, 2nd Thing You Should Know About Buying Foreclosures, 3rd Thing You Should Know About Buying Foreclosures, 4th Thing You Should Know About Buying Foreclosures, 5th Thing You Should Know About Buying Foreclosures, 6th Thing You Should Know About Buying Foreclosures, 7th Thing You Should Know About Buying Foreclosures, 8th Thing You Should Know About Buying Foreclosures), I wrote about Terminology, Pricing, Multiple Offers, Response Time, Property Condition, Repairs, Utilities and Bank Addenda – as they relate to “Things You Should Know About Buying a Foreclosure.” Here’s the 9th post of the series:
- Investors vs. Owner-Occupants – Fannie Mae, Freddie Mac and a couple other banks have implemented what is commonly known as a FirstLook Policy. During the first 15 days of the listing (for Fannie & Freddie), the bank/seller will not accept, entertain or consider any offer that is not from an owner-occupant buyer.
In other words, no investor offers or second home buyer offers may be submitted until at least 15 calendar days have passed, thus theoretically giving owner-occupant home buyers first shot at the property. Other banks that are following the lead of Fannie and Freddie have implemented similar policies, with owner-occupant offers given priority consideration for the first 5-7 days of the listing.
So how might this affect your home buying strategy? You need to be aware that if you’re a buyer looking to purchase and occupy a home, then you have a significant advantage during the first 15 days of such new listings. You will be in competition with other owner-occupant buyers, but investors and second home buyers will not be able to compete with you. Be sure to consult with your Buyer’s Agent about the nuances of this advantage, and how you can best take advantage of it.
If on the other hand you’re a second home buyer or investor, then your best strategy is going to be in spotting potential bank owned bargains and then ‘hawking’ them until the FirstLook period has expired. And prudence would dictate that you be fully prepared to submit an offer on the 16th day of the listing.
Make sense?
