Word is out that Miami is for sale, so every buyer I work with nowadays is looking for a "great deal". However, these deals are becoming harder and harder to find because more buyers are chasing them with every passing month. The best of these deals are Miami foreclosure condos as banks are looking to sell these properties quickly at or slightly below current market prices. Buying a foreclosure condo is not easy. There a few things that you need to know before you begin the process:

These are all cash transactions -- no financing. Due to the difficulty in closing loans in many condo buildings, banks have a strong preference to choose an all cash offer. I've bid on several properties where the bank chose an all cash offer over a higher offer that involved financing. With the majority of property buyers in Miami being international, there are no shortage of all cash offers.

Bid Aggressively

You need to bid aggressively based on what similar properties have sold for in the building. The list price of the property is irrelevant and most sell for above the list price. Most banks intentionally list their properties very low in order to attract attention and incite a bidding war. It is not uncommon for the best properties to have 20-30 all cash bidders. Not bidding aggressively enough is a common mistake that MANY buyers make -- if only they would follow the advice of their Realtor. It may be 6 months or more before another similar property is available, so why wait?

There isn't a lot of foreclosure inventory that is on the market at any given time. Banks have been slow to release properties as a result of several foreclosure moratoriums implemented by the government. The majority of bank owned condos are $150,000 or less, and there are hardly any available for $500,000 or more. They are usually off the market within 30 days. You need to work with an experienced Realtor who monitors the market every day and will alert you when any new foreclosure condos are available that meet your criteria. It's not uncommon for some of these properties to be taken off the market several days after they were made available for sale.

Most foreclosure condos need a little TLC. It's important to remember that they have been vacant for quite a while and were previously occupied by someone who was in foreclosure and had no incentive to properly maintain the property. The most important things are the building that the unit is in and the view. I would also check to see if there are any major repair items that you will be responsible for such as a broken air conditioner or missing appliances.

I hope you found this to be a useful introduction to purchasing a Miami foreclosure condo. If you have any questions or comments, please do not hesitate to contact us. We would be happy to assist you in acquiring a wonderful property in the Miami area.

Tags: banks, bidders, cash, cash offer, condo, condo buildings, condos, foreclosure, foreclosure condo, foreclosure condo miami, inventory, Miami, realtor