Lots of people are so-called experts on foreclosures and continue to give bad advice to buyers.
Here's the scoop of the myths you may hear:
1 - There are going to be a flood of new foreclosures on the Metro Detroit market.
Nope! We were the first in the bad stuff and we are one of the first out. We have worked thru the backlog.
2 - You can get a killer deal by submitting lowball offers on foreclosures.
Nope! Most of the banks are pricing them for multiple offers over asking. If you were holding out for the screaming deal - you missed the boat!
3 - Appraisers don't use foreclosures for appraisals.
Yep they do! If it works for them as a good comparable, they must and they do.
4 - Foreclosures only affect the bottom end of the market.
Nope! Plenty of upper end/luxury homes have been foreclosed upon - a number of them a "strategic defaults". There have been and still are foreclosures in each and every market segment.