Property Acquisition

Various Ways to Obtain Real Estate

There are many ways to acquire real estate whether you do it by yourself or get assistance from a Realtor. Many Realtors specialize in certain kinds of properties such as commercial, residential apartments, or site development. Some also like to work with foreclosures and seizures. If you are trying to buy a commercial building or lease office space, don't go to a residential realtor. Although they are both in the real estate business, they are as different as night and day. Some specialties such as property management require specific licensing requirements.

Realtors and the MLS:

By far the easiest way to acquire a home is through a Real Estate Professional. Their concentration is in the business of selling and buying residential property. They are almost all members of the local real estate board and have access to the Multiple Listing Service (MLS). With the MLS they can search through thousands of listings and should be able to find your dream home in short order.

HUD and Foreclosures:

The U. S. Department of Housing and Urban Development (HUD) is a great source of single family homes - but you have to know the rules! HUD does not sell directly to the public. They have agreements with local real estate companies who advertise and sell the homes they have acquired. Working with HUD is a little different than going through the MLS. Make sure your Realtor is knowledgeable of the bidding process required to obtain these home.

VA Foreclosures:

The Veterans Administration acquires properties that where secured by a VA loan. Like HUD Properties, these foreclosures are listed with Realtors. You do not have to be a veteran to acquire a VA Foreclosure.

Auctions and Bidding:

Auctions are another way to obtain property but this process is not for the faint of heart or someone with limited funds. If you have the winning bid you have to be able to obtain the funds necessary to close. Many Auction companies require substantial 'good faith' deposits before allowing you to participate.

Auctions should not be confused with bidding. Auctions normally involve a group of people making offers on specific pieces of property. The offers change constantly until all competition is driven out of the process. Bidding is a situation where you make an offer of a particular price for a specific piece of real estate. If you are the high bidder, you acquire the property, otherwise it is sold to someone else. Generally there is no second chance to make a higher offer. HUD properties are acquired through a bidding process.

Bank Foreclosures:

Bank foreclosure sales are another way of buying real estate but it is difficult. Responses to offers are slow, coming to an agreement is difficult, and the property is most likely in poor condition. Banks will only do enough to get the property sold, no more.

Government Seizures:

A new way of purchasing real estate has emerged in the last few years - Seizures. These are properties the Federal Government has acquired (seized) during drug busts or other criminal activity.

Internal Revenue Service (IRS) Tax seizures:

The Internal Revenue Service also acquires real estate though tax liens. This is buyer beware because the liens remain attached to the property until satisfied. Make sure of the real cost before going this route.