Shakopee Foreclosures: When And How To Buy

How to buy a Shakopee foreclosure

Are you thinking about buying one of the properties in foreclosure in Shakopee? Whether you own a home now or are a Minnesota first time home buyer, you will want to learn the basics before going out to buy. While there are many great values in Shakopee foreclosures you should be prepared for how to negotiate your offer. Located just southwest of Minneapolis, Shakopee is one of the larger bedroom communities of the Twin Cities. Also known as the county seat of Scott County, the city of Shakopee has more than tripled in size over the last twenty years. Shakopee is also home to popular entertainment destinations such as the Canterbury Park horse race track, the Valley Fair amusement Park as well as the Renaissance Festival. As an outer-ring suburb many Shakopee residents commute to downtown Minneapolis for employment. MN first time home buyers in this area in this area will want to look into the Scott County home buyers club for down payment assistance.

Knowing What To Offer On A Foreclosure

A Shakopee foreclosure can be a great value because the bank owns it and is paying for the maintenance of it. As opposed to a short sale, the selling bank has a big motivation to get the listing off of their books. At the same time, banks who are involved in selling a foreclosure want to maximize the amount they get out of the property. In the lower price ranges it has turned into a sellers market meaning that many foreclosures sell for well above the listing price! Knowing what to offer for the foreclosure is critical in terms of being successful with your purchase.

Factors in Foreclosure Buying

There are two big factors to consider when determining how much to offer. The first factor is to consider how long the property has been on the market and the second thing is the general property condition. A foreclosure that has just been listed is likely to sell for near the listing price, while a bank that has a home that has been on the market a long time may be willing to negotiate for deep discounts. Also, a listing that is in poor overall condition may not be able to be financed so the bank may reduce the price far enough to attract cash buyers. I can help you determine these factors as we go out looking for Shakopee foreclosures.
If you are planning on financing the purchase of a foreclosure there are some important things to know as well. First, the house itself must be in acceptable condition to the lender in order for it to qualify for most mortgage programs. Properties in generally poor condition will either require a cash offer or special mortgage financing such as the FHA 203k program. Selling banks will also tend to limit the amount seller paid concessions towards the closing costs of your home loan. In most of these cases the selling bank will limit their contribution to 3 per cent of the selling price, or 2 per cent if you are an investor. Additionally, a selling bank will never look at your offer if it includes a financing contingency for the sale of a home and if you don't provide a preapproval letter along with the offer.

MN First Time Buyers First Step

For many MN first time home buyers the intimidating question is where do I start? Your very first step to home ownership is to get prequalified for a home loan. By doing so you find out how much you are qualified for so that we can research homes in a price range with comfortable payments for you.

Ready to Find A Foreclosed Home?

If you are thinking of buying a foreclosure please give me a call or send me an email. There are many great foreclosure values out there but knowing which one to buy will take some time and expertise. I would value the opportunity to help you in your search for the ideal house!


Robert Phyle,CSP,GRI,RSA
Broker Associate, Realtor
Coldwell Banker Burnet
rlphyle@cbburnet.com
Cell 612-801-4657
Direct 952-997-1955
Fax 952-432-8372
7741 147th St W.
Apple Valley, MN 55124
www.facebook.com/robphylerealestate
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