We get a lot of questions about Buying Foreclosures in the Charleston area and so I thought I would share some secrets on getting the best possible deal on these foreclosures.

1) Buy a Foreclosure at the End of the Year
November and December are great months to buy foreclosures.  This is because banks are looking to unload their inventory of foreclosures before the end of the fiscal year.  Some investors will only buy at the end of the year because the discounts are significant.  Regular homebuyers can take the same approach.

2) Keep Track of Foreclosure Properties You Like That Have Been Sitting on the Market
If a property sits on the market for too long, the bank will eventually lower the price.  When it does, you can be ready to make an offer (maybe for 88-90% of the new lower price).  This is a great way to get a home you like at a hefty discount.  You can ask us to set up an alert on the MLS system that will let you know when the price is lowered.

3) Look Past Superficial Defects When Buying A Foreclosure
Many buyers will avoid foreclosures that are not in pristine condition.  With a few dollars or hours of sweat equity, a buyer can have a home looking 'like new'.  The key is working with a broker who knows what the costs are for certain repairs.  A substantial discount can be had on homes that just need a little sprucing up.

4) Offer to Close Within 15-20 days
Decreasing the number of days in the contract time period increases your chance of getting a larger discount on a foreclosed home.  Banks will often accept a lower priced offer if the contract period is for a shorter than usual time frame.  Of course, if you make this type of offer, you need to be preapproved and you need to let the lender know of the shorter contract period beforehand.  Even if the transaction takes a little longer than expected, the per diem costs the buyer incurs will pale in comparison to the thousands saved overall.

5) Increase Your Earnest Money Deposit
This will let the bank know that you are serious about purchasing the foreclosure; this in turn can get your potentially lower offer accepted over someone else's.  Of course, work with an experienced broker who knows how to structure the contract to fully protect that deposit, should the transaction fall through.

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