When looking for a home for
you and your family you will come across all kinds of deals, bargains, and
so-called values along the way. If price is a very tangible object for you and
your real estate investment then you might seriously want to consider the value
of foreclosures. If you are hoping to invest in real estate in order to turn a
profit then you may also wish to consider these properties that are often sold
well below the ordinary value of the property because they are in varying
degrees of disrepair.
Foreclosures are properties
that have been taken back by the lenders because the previous owners were
unable to continue making payments on the property. Being that these homes were
often owned by those in financial distress and may have been empty for some
time before being sold, chances are that the foreclosure homes being sold at
any given time are in some degree of disrepair. The shabbiness of many of these
properties is one of the factors that keeps the prices down. Another is the
fact that the lenders are essentially attempting to recoup their investment in
the property. For this reason they are often willing to take less than the
value of the property if that is what is owed on the property.
Why are these properties
often in a state of disrepair? Truthfully, there are many reasons but the
primary culprit in this situation is money. Obviously the owners of the home
were struggling to make the payments or the home would not be in the state of
foreclosure. If the notes on the property were difficult to begin with it makes
perfect sense that other issues such as leaking roofs, shabby carpeting, or
plumbing maintenance would take a distant second in priority to making the
house payment.
At the same time, there are
those who are bitter about loosing their homes. As sad as the situation may be
some add insult to injury by damaging these properties intentionally. These
homeowners feel they have nothing left to loose and if they cannot have their
property hole then the lenders should not as well. While this is by no means
the way to go there are very many who choose this path over other options.
The fact is that their loss
in these situations is actually your gain. The damage they do to the property
is often not terribly expensive to repair though it can be quite bothersome.
Your willingness to do the work in order to create a beautiful home for you and
your family or as an investment can often translate to big savings at the
closing table or when negotiating the price of the property. Foreclosures can allow families to buy larger
homes in better neighborhoods than they would ordinarily be able to afford.
They can also provide a fabulous kick-start to a property investment portfolio.
Despite common claims and
Internet advertisements, you do not need to buy a list in order to find
foreclosed real estate in your area. You simply need to procure the services of
a competent realtor and let him or her know that your intentions are to
purchase a foreclosed property or some other property that is selling well
below market value. You might be amazed at the wealth of information and
assistance your realtor can provide not only in finding excellent foreclosures
but also when it comes to procuring financing for some of the more creatively
damaged foreclosures you may run across at insane bargain prices.
No comments:
Post a Comment