A Guide to Buying Myrtle Beach Foreclosures

Lisa and I hear from people all the time who are interested in learning about Myrtle Beach foreclosures for a variety of reasons. Some are looking for inexpensive housing that they can invest "sweat equity" into to have a nicer home than they could normally afford. Other people are looking to buy, rehab, and flip a property quickly for a profit. Others are looking to acquire a Myrtle Beach foreclosures to use as a rental property for a more long-term investment. All of these scenarios are achievable if you have the right information to make an educated decision.

Being successful at purchasing a Myrtle Beach foreclosure requires some preparation. Most Sellers of foreclosed properties require a minimum amount of earnest money to accompany any offer to purchase. The first steps you should take are as follows:

Find a real estate agent that can help you identify Myrtle Beach foreclosures as soon as they come on the market. Time is of the essence in all real estate transactions, but even more so in the Myrtle Beach foreclosure market. Sign up for our free Myrtle Beach Foreclosures Listings Update
Have enough cash on hand to meet any minimum earnest money requirement, sometimes 2% or more of the purchase price. The more earnest money you put down the better your offer looks to the Seller.
If you will be borrowing funds to purchase you must be pre-qualified by your lender and have documentation to support this. Most Sellers require evidence of qualification or proof of available funds (cash) to be submitted with any offer to purchase. Michelle Dixon with Wells Fargo will pre-qualify you at no charge. You can conveniently apply on line from all 50 states. Wells Faro - Michelle dixon
Be prepared to move quickly. A foreclosure that is priced to sell will not stay on the market long.
Make your offer to purchase contingent upon an inspection of the property. Make the inspection period as short as possible for you to complete inspections and receive bids from contractors for repairs. An extended inspection period will make your offer less attractive to the Seller.
Have a team of contractors available that will give you written estimates of repair costs in a timely fashion. This will likely include people who do carpentry, plumbing, drywall repair, carpet and flooring, roofing, septic systems, field lines, electrical repair, heating and air, etc.
Know the Myrtle Beach real estate market where the foreclosure is located. Have your real estate agent prepare a Competitive Market Analysis so you can see how much homes in the area are selling for. This is key to knowing how much you should offer for the property.
If you plan to live in the property, try to have repairs done prior to moving into the home. Renovations are much more difficult after you move in.
If you are planning to rehab the home for rent or resale you must be prepared to move quickly. Time is money! If you had to borrow money for the purchase, every day you spend on repairs is costing you money on interest. This can quickly eat into your profit margin. The same is true if you plan to use the property as a rental.
If you will be selling, work with an agent who knows that market and who can expose your property to potential Buyers.

Following the suggestions above greatly increase your chances of having the offer to purchase accepted. Making the transaction successful/profitable from this point depends on your end goal.

The most common pitfalls that snare the novice investor are as follows:

Underestimating the cost of repairs.
Paying too much for a property.
Getting a good deal on the initial price and needlessly investing too much in repairs or upgrades.
Taking too long to get the property ready for resale or rent
Not knowing how much comparable homes in the area typically sell for.
Trying to maximize profit by selling For Sale By Owner. This limits exposure to potential buyers and can increase time to sell. Remember, every day the home stays for sale means more expenses for insurance, interest and taxes.

Investing in Myrtle Beach foreclosures can be financially rewarding if you take the time to prepare yourself. You should be cautious, but not so much so that you miss an opportunity. Surrounding yourself with the right support staff consisting of a good lender, real estate agent, and contractors will be key to your success.

Remember, a buyer's agent works for you. They advise you of market conditions and provide you other invaluable resources. They negotiate on your behalf with your best interests in mind. A good buyer's agent will help you avoid a bad investment and help ensure you receive a lifetime of value form your real estate purchase.

Real Estate has consistently outperformed many other methods of investing. If you are considering Myrtle Beach foreclosures as an alternative to traditional investing, or a conventional purchase please feel free to contact us. Lisa 843-997-4289 This e-mail address is being protected from spambots. You need JavaScript enabled to view it or Mike 843-602-7644 This e-mail address is being protected from spambots. You need JavaScript enabled to view it

You can preview all of the Myrtle Beach foreclosures online by visiting the foreclosure listings on this site or sign up for our weekly or daily Myrtle Beach Foreclosures Listings Updates