Update on Katy Foreclosures

So often, I am asked how Katy is affected by the foreclosure crisis.  While Texas has not suffered like many states, there is always a steady supply of foreclosed houses both north and south of I-10.

Using the Katy School District as my geographical criteria in determining area foreclosures, there are currently 31 bank-owned properties south of I-10 and 40 north of I-10. Today’s photos are from four different houses currently on the market as foreclosures.

Prices of Katy foreclosures range from a very low $39,900 all the way to $545,000. Most often, foreclosures are priced aggressively to sell, being listed below market value. Typically, there is not a lot of room to negotiate when buying a foreclosure.

In fact, you may find that you have to pay above list price to win the bid; just make sure you are still buying below or at fair-market value. (Not all foreclosures are “a deal”.) To accomplish this, work with a Realtor to evaluate the subdivision’s comparable sales.

As is often the case, multiple offers are made on a property. The bank will then call for your “highest and best” offer; this is a sure indication that you will have to pay list price or higher. You are in a bidding war.

When structuring your offer, don’t ask for concessions such as the seller paying closing costs or providing a home warranty. All the bank considers is their final net. Period. Don’t muck up your offer, and minimize your chances of winning the bid, with such requests.

That being said, many foreclosures, especially government held notes, qualify for special financing. Work with your Realtor and explore these opportunities.

While you will have the chance to inspect the property, and reject it due to needed repairs, the vast majority of foreclosures are sold “as is” meaning the owner will do no repairs. Before you agree to purchase, make sure you are prepared to spend the money necessary to rehab the property.

For more information on Katy area foreclosures and/or short sales, please call me at 713-818-2404. To tour area properties, contact me by phone or via my website, FuellingKaty.com.