Things To Think About When Buying a Foreclosure
You may have heard stories or read articles predicting a wave of foreclosures hitting the market. You might be planning to buy one, thinking it’ll be a great way to get a house quickly and cheaply; after all, banks want to get rid of them as fast as possible. That is only partially true. I’ve worked with short sales and foreclosed properties for well over 10 years, and I have a few lessons that might help you.
"If you want to buy a foreclosure, figure out how you’re going to pay for the repairs."
Foreclosed properties are almost always distressed, neglected, or damaged. You might be able to buy it for less, but whatever money you save on the purchase will likely be eclipsed by the repair costs. First-time homebuyers may think they will do these repairs over time, but that’s rarely an option. In reality, these repairs are often a bigger job than you imagine and will end up sucking time and energy out of you.
If you want to buy a foreclosure, figure out how you’re going to pay for the repairs, then we can talk. These properties can certainly be a good deal for investors with plenty of money to spare or homebuyers who have enough money and desire to fix up the house.
I don’t expect the market to be flooded with foreclosures. Most homeowners have enough equity to sell the house and pay off their mortgage. Black Knight is forecasting a pretty normal foreclosure market.
As always, if you have any questions about foreclosures or want to find the best property to suit your needs, give me a call or send an email. I’d be more than happy to help.