'Not Every Distressed Property Is a Bargain'

By
Real Estate Agent with Century 21 Northland
 
-->

Foreclosures can offer some home buyers big bargains, with the typical discount on a foreclosure about 19 percent, according to National Association of REALTORS® data from May. But buyers should be careful not to be guided by price alone, housing experts warn.

“Distressed properties can have great appeal,” says Wendy Forsythe, executive vice president at Atlantic Pacific Real Estate. “Discounted prices and historically low interest rates make these homes affordable to many families who might otherwise not be able to buy a property. But buyers also need to be selective because not every distressed property is a bargain.”

Home buyers need to be aware of some of the following issues with foreclosures before they buy, according to Atlantic Pacific Real Estate, a real estate brokerage with offices in 22 states:

1. Know the claims on the property. How many lenders have claims against the property? “If a distressed home has been financed with two or more loans then the sales process can be far more complex,” according to an article for RISMedia written by Atlantic Pacific Real Estate.

2. Get financing in order. How does the buyer plan to finance the purchase of the property? “Buyers who use financing must prepare in advance so they can act quickly when a distressed property becomes available as there are often multiple bids on an individual home,” according to Atlantic Pacific Real Estate.

3. Judge the condition. Buyers need to carefully weigh the condition of the property. Some foreclosures require extensive and expensive work, and some buyers may find themselves getting in over their head, if they aren’t careful and don’t have a thorough home inspection done of the property prior.

4. Check for potential delays. For example, is the property already occupied? If so, an eviction may be needed and this could delay the purchase process. Buyers need to be prepared for any potential delays.

Source: “Buying a Distressed Home: What You Need to Know,” RISMedia (July 15, 2012)

 

Want to purchase a distressed property in the Traverse City area? Contact Jon Becker - Century 21 Northland 231-342-5401 jon@c21jb.com

Jon has completed his SFR Designation ( Short Sale Foreclosure Resource) to better help serve his clients!

Posted by

Jon Becker - Century 21 Northland

ABR, Green, SFR, Quality Service Award (2009-2013)

jon@c21jb.com

231-342-5401

www.c21jb.com for all Traverse City area real estate listings & information

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
ActiveRain Community
Location:
Michigan
Groups:
Northern Michigan Real Estate & Property Marketing
Lakeshores of Michigan
Northern Lower Michigan Real Estate
Posts to Localism
LGBT Referrals
Tags:
buyer information
traverse city short sales
traverse city foreclosures
traverse city real estate

Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the clock to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the folder to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Show All Comments
Rainmaker
974,130
Edward & Celia Maddox
Solutions Real Estate - Queen Creek, AZ
We Take The High Road

I also warn my clients about going to the foreclosure auctions.  You have to know exactly what you are buying and the liens you may be inheriting.

Aug 08, 2012 11:52 AM #1
Rainmaker
581,780
Robert Rauf
HomeBridge Financial Services (NJ) - Toms River, NJ

people seem to think they can get a house for pennies on the dollar... Banks know what things are worth, they dont have to give them away - just price it a little under market and it will sell!  if it is way under---- look out, there is probably something wrong with it!

Aug 08, 2012 11:57 AM #2
Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the pencil to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Show All Comments
Rainmaker
187,065

Jon Becker

Traverse City Real Estate Consultant
Ask me a question
*
*
*
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the airplane to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Additional Information