Naples Florida Foreclosed Properties
See Also: Naples Florida Short Sales
Foreclosures in Naples Florida
Foreclosed properties exist throughout the Naples area, but most foreclosures are concentrated in workforce communities (such as Golden Gate City and Golden Gate Estates). Foreclosures in Naples' desirable second home communities appear sporadically, and if priced at foreclosed values, sell very quickly and can turn out to be a really good buy.
Worthwhile foreclosures in Naples FL sell quickly, many just days from when they are first listed. Buyers interested in a foreclosed property need to be either a cash buyer with proof of funds, or have a pre-approval letter from a lender. No offer will be considered without this. Interested buyers need to act fast, as worthwhile foreclosed properties disappear. Many foreclosed properties end up in a multiple offer situation.
For the Naples area, banks do not accept low ball offers on foreclosures. They price the home aggressively, and if it does not sell, they will periodically reduce the price until it sells. Often a bank will price the home very low, accumulate multiple offers, and then give the buyers notice that it is a multiple offer situation and ask them to resubmit their final and best offer. Approximately 60% of foreclosed listed properties, sell at or above the listed price. Those that sell for less, were not appropriately priced to start.
The number of available foreclosed properties for sale has been decreasing. There are more foreclosed properties under purchase agreement, then there are listed for sale.
Foreclosures are Sold "AS IS"
If you are thinking about a second home purchase, and want to focus on foreclosures in a desirable Naples second home community, then your choices will be very limit or will not exist. And you better bring along your hammer, paintbrush and work crews. Appliances have usually been stripped out by the foreclosed owner, along with any fixtures of value.
Foreclosure are usually in disrepair, they are owned by
the “bank.” Mr. “Bank” has never stepped in the property or looked
at it. The property is a number on a piece of paper at the bank.
Foreclosed properties are sold in "AS IS" condition, meaning repairs that would typically be the responsibility of the seller will not be made. The buyer is accepting the property, in its "as is" state.
The buyer still has the right to inspect the property, and can cancel the agreement within a certain timeframe if the extent of discovered repairs are over and above what was anticipated.
Purchasing a foreclosure in Naples could be a very good value. In rare cases a foreclosed property can be in very good condition, particularly recently built properties.
Where to Find Foreclosed Properties for Sale in Naples
Foreclosed properties are listed for sale in the MLS, the same as any other listing. The bank is the owner, they engage a real estate agent to list it for them, and it gets listed. There is no secret list, or secret pipeline of foreclosed properties. Foreclosures are in the MLS and they are tagged as foreclosures.
Bank Owned Properties FAQs
Q. What is REO?
A. That stands for real estate owned. That is how banks refer to foreclosed properties that they own.
Q. How quickly will banks respond to an offer.
A. Usually they will respond within a day or two.
Q. Can you offer less than list price?
A. Yes. But if it is a new listing, and a truly hot deal, then the buyer looking to get a even better deal often ends up empty handed. The longer the foreclosure has been on the market, then the more flexible the bank may be in negotiations.
Q. Is the fee or charge the bank requires for an offer?
A. No.
Q. Does the bank provide a Seller's disclosure?
A. Nope. The bank does not know anything about the property and as such has nothing to disclose. It is up to the buyer to perform all inspections to understand the condition of the property. The buyer has period of time to do that, and can back out if they discover a major problem. Any deposits are then refunded.
Q. What is a multiple offer situation.
A. That is when there is more than one offer on the property. It happen frequently in the Naples Florida foreclosure market. The bank will not disclose the terms of any other offer. It will ask each buyer to submit their final and best offer. Then the bank will work with the best offer, and the others do not get a third chance.
Q. If a foreclosure goes under contract. Can I find out what it sold for?
A. That is a private agreement between the seller and buyer. When the buyer closes on the property, then the sales price will be known.