Taylor Realty Group | Colorado Real Estate ExpertsTaylor Realty Group | Colorado Real Estate Experts

Serving Denver Metro And Boulder County Since 2004!

Serving Denver Metro & Boulder County Since 2004!
Voted 5280 Magazine's FIVE STAR REALTOR (13 Year Winner)
303-669-2744
michael@taylorrealtygroup.net
  • Menu
  • Home
  • Search Homes
    • Featured Listings
    • All Listings
  • Buy
  • Sell
  • Lease
  • Blog
    • See All Posts
    • Buyer Tips & Advice
    • Seller Tips & Advice
    • Market Conditions
    • Mortgages & Loans
    • Homeowner Tips
    • Personal & Biz Updates
    • Just Sold!
  • Resources
    • Preferred Partners
    • Home Wealth Analysis
    • Instant Home Valuation
    • Find Best Realtors in US
    • Community Pages
      • Broomfield, Colorado Community Information
      • Denver Community Page Guide
      • Thornton, Colorado Community Information
      • Westminster, Colorado Community Information
      • Arvada, Colorado Community Information
  • About
    • Get To Know Us
    • Testimonials
    • Let’s Talk! (Contact Us)
    • Just Sold!

5 Tips For Buying A Foreclosure In Colorado

5 Tips when buying foreclosed home in Denver COIt’s hard to resist isn’t it? The desire to find that “good deal” and buy a home below market value. Well….before you roll up your sleeves and say “I want to buy a foreclosure” there are 5 things you should know! After reading, if you decide it’s the direction that works for you, I’ve helped many people purchase foreclosures (and short sales) and would love to be of help.

1. Choose a foreclosure sale expert. Lenders rarely sell their own foreclosures directly to consumers. They list them with real estate brokers. You can work with a real estate agent who sells foreclosed homes for lenders, or have a buyer’s agent find foreclosure properties for you. To locate a foreclosure sales specialist, call local brokers and ask the real estate professional which lenders’ homes they’ve sold, how many buyers they’ve represented in a foreclosed property purchase, how many of those sales they closed last year, and who they legally represent.

If the agent represents the lender, don’t reveal anything to her that you don’t want the lender to know, like whether you’re willing to spend more than you offer for a house. You should get your own buyer agent to represent you.

2. Be ready for Multiple Offers – Buying a foreclosed home in Colorado is more complex than a traditional purchase. First, the homes often are listed at or below market value and create higher demand. Most are sold in less than 7 days on market and have more than one offer. Work with your agent to get a report of similar homes that have sold and determine the “maximum” you are willing to pay. If there are multiple offers and you are convinced this is the home for you, present your “maximum”, often called highest and best, and that way if you get outbid you don’t have any regrets. While some people will tell you to always offer X % below asking price, this simply is not true when buying foreclosed home in Colorado. It is competitive. At the time this is written (May 2011) most foreclosed homes in Colorado sell for 99% of list price. Some sell higher. Your agent can give you professional advice to make a strong offer but without paying too much.

3. Be Ready for Paperwork, and More Paperwork – Foreclosed homes are owned by a bank. Each bank will have it’s unique set of disclosures and addendums that you will need to sign .Some require them signed when you make an offer. Others wait until your offer is accepted. Either way, there will be 20-30 pages of documents in addition to the standard Colorado purchase contract that you will need to review and sign. If you miss one inital or signature they can reject your offer and move on to another buyer. It’s extremely important your agent turns in a complete offer package for you. Oh yea, and many banks require ORIGINAL signatures, so no electronic or scanned signatures will work. Be prepared to coordinate logistics to sign these docs in person and often with only 24 hrs to do so.

 

4. No Contingencies. All mortgage market players, such as Fannie Mae, require buyers to submit financing pre approval letters with a purchase offer. They’ll also reject all contingencies. Since most foreclosed homes are vacant, closings can be quick. Make sure you have the cash you’ll need to close your purchase or a loan full approved before committing to an offer. They absolutely won’t allow it to be contingent on you selling your home either.

5. Expect an as-is sale. Most homeowners stopped maintaining their home long before they could no longer make mortgage payments. Be sure to have enough money left after the sale to make at least minor, and sometimes substantive, repairs. Although lenders may do minor cosmetic repairs to make foreclosed homes more marketable, they won’t give you credits for repair costs (or make additional repairs) because they’ve already factored the property’s condition into their asking price. Banks almost always make the sale “AS IS” meaning they won’t make any repairs to the home if you find problems at inspection.  Often, they give you a short time frame to have an inspection performed too. Once you get the report, you often have 24 hrs to decide if you want to move forward or terminate the purchase. If you terminate, be sure to read the bank addendums BEFORE you go under contract to know if you will get your earnest money (deposit) refunded.
Are you still reading? If so then you are trooper and buying a foreclosure could be for you! Give me a call at 303-669-2744 x 5 or email me. My info is at the top of this web page.

Posted in: Buyer Tips & Advice, Buying Foreclosures, The Blog

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Post navigation

« Do I Need 20% Downpayment to Buy A House?
Spring 2011 Denver Metro Real Estate Market Report »

Blog Categories

    • ▼Buyer Tips & Advice (85)
      • Buying Foreclosures (7)
      • Buying Short Sales (4)
      • Mortgages & Loans (9)
      • New Construction & Home Builders (4)
      • Transaction Tips (10)
      • Working With A Realtor (4)
    • ►Seller Tips & Advice (81)
      • Market Conditions/Trends/Insights (8)
      • Listing & Marketing (8)
      • Offers – Negotiating – Closing (4)
      • Choosing A Realtor (4)
      • Short Sales FAQ (5)
      • Thinking About Moving (Deciding If It Makes Sense) (4)
    • Market Updates (62)
    • Homeowner Tips (26)
    • Mortgages & Loans (24)
    • Personal & Biz Updates (32)
    • Weird ‘n Wacky News (4)
Search for:
WHY Taylor Realty Group?
Best Broomfield CO Real Estate Agent RealtorColorado home buyers and sellers need a consultant, not a salesperson. Our “STRATEGIC” approach is committed to providing Expert Guidance & Friendly Personal Service.
  • Unique Marketing System For Sellers = More $$ / Faster Results
    Learn More
  • Buyer Consulting Services = Smart, Confident Purchases
    Learn More

Get Started: Contact Mike Now!

Testimonials: Success Stories

Found Our Dream House

We rented with Michael for 3 years and they helped us looked for our dream house for 2 years.  Great Experience.

Bryce Jensen
Mike is a bulldog

Mike and his team are absolutely wonderful. They are all on top of it and super responsive. Mike is a bulldog and really knows his business. Everything went super smooth. I...

Cassie Jensen
Understands BOTH the Micro AND Macro Housing Trends

Super professional. More importantly Michael is the 1st realtor I’ve interacted with who understands both the micro AND macro housing trends. He also seemed to care about...

Greg Davenport
Honest, Professional and Knowledgeable

Michael sold us our first home and then a few years later we had to relocate and he sold our home for us. He’s honest, professional, knowledgeable and efficient. We were ...

Sean & Alyssa Burroughs
Future Dream Home

Mike and his team got us our starter home when we weren’t sure if we could get a home. Then helped us get our dream home by selling our starter home for more then we coul...

Emily Hauther

Read More Testimonials »

Socialize With Us!

Thinking About SELLING?
Seller Success Guide
  • What’s My Home Worth?
  • First 5 Things To Do
  • Interviewing Realtors: 16 Questions
  • Negotiating Like a Pro
  • Keep The Sale From Crashing

See SELLER Success Guide!

Thinking About BUYING?
Buyer Quickstart Guide
  • Clarify Your Goals
  • Choosing The Best Mortgage & Lender
  • How To Find Best Listings First!
  • Negotiate Best Possible Offer & Make Sure It Closes

See BUYER Quickstart Guide!

Homes For Sale By City

Let's Talk! How can I help?
First Name
Last Name*
Email
Comments
Lead Source

Contact Us

Taylor Realty Group

303-669-2744
michael@taylorrealtygroup.net

1499 West 120th Ave #110 Westminster CO 80234

Get Our Email Newsletter

Explore Cities

  • Arvada
  • Aurora
  • Boulder
  • Brighton
  • Broomfield
  • Castle Rock
  • Centennial
  • Commerce City
  • Denver
  • Englewood
  • Erie
  • Firestone
  • Frederick
  • Greenwood Village
  • Highlands Ranch
  • Lafayette
  • Lakewood
  • Littleton
  • Lone Tree
  • Longmont
  • Louisville
  • Northglenn
  • Parker
  • Superior
  • Thornton
  • Wheat Ridge

Meet Michael, Your Real Estate Agent

Real Estate Agent Broomfield Thornton Westminster Colorado Colorado home buyers and sellers need a consultant, not a salesperson. I specialize in Broomfield, Thornton, & Westminster real estate but am often referred to help people throughout Denver Metro & Boulder County! My commitment to you: Expert Guidance & Friendly Personal Service!
  • 5280 Magazine’s FIVE STAR REALTOR (13 Year Winner)
  • Featured on HGTV!
  • Top 5% of Realtors Nationwide!
  • Full Time CO Realtor Since 2004
logos-325

Meet Michael - Your Consultant

Voted 5280 Magazine's FIVE STAR REALTOR
Based on Overall Client Satisfaction (2010 - 2018) 

Taylor Realty Group | Since 2004

1499 West 120th Ave #110 Westminster CO 80234

© 2025 · Log in · Privacy Policy

MENU
  • Home
  • Search Homes
    • Featured Listings
    • All Listings
  • Buy
  • Sell
  • Lease
  • Blog
    • See All Posts
    • Buyer Tips & Advice
    • Seller Tips & Advice
    • Market Conditions
    • Mortgages & Loans
    • Homeowner Tips
    • Personal & Biz Updates
    • Just Sold!
  • Resources
    • Preferred Partners
    • Home Wealth Analysis
    • Instant Home Valuation
    • Find Best Realtors in US
    • Community Pages
      • Broomfield, Colorado Community Information
      • Denver Community Page Guide
      • Thornton, Colorado Community Information
      • Westminster, Colorado Community Information
      • Arvada, Colorado Community Information
  • About
    • Get To Know Us
    • Testimonials
    • Let’s Talk! (Contact Us)
    • Just Sold!