One of the great joys of my job is to help first time home buyers select and purchase their new home in Reno or Sparks. They are so excited to find that perfect match, and I get such a kick out of being part of the whole process. Because of the current realities of our Northern Nevada real estate market, most of the homes we go to see at an entry level price point are either short sales or foreclosure properties. Even experienced home buyers have a lot of questions about what to expect with these sorts of transactions; for first-timers, it adds a whole layer of complexity to an already new and overwhelming process.
First-time buyers are generally very Internet savvy, and have been educating themselves online long before we meet. So they are of course very interested in the good deals that they have been reading about in the foreclosure market. Just this past weekend, I looked at a few with some new clients.
Reality hit like a gallon of Gatorade over a coach's head as we walked into the first place. Very cute on the outside, we entered to find...welll...not much. Everything of conceivable value had been removed. Their eyes got wider as we walked beneath bare wires dangling where fixtures once resided and into the kitchen. Lots of empty spaces there, where once was a stove, a dishwasher, and a refrigerator. "Lots of room for storage though!" I remarked brightly. They both looked over at me with their mouths hanging open, only to see the teasing smile on my face. On down the hall to the bathroom, where once was a toilet, a light fixture, a mirror. I could see the calculators going ka-ching, ka-ching in their heads.
Once outside, we had a little heart to heart chat. Yes, the asking price is low for the neighborhood. But does that make this property a "deal"? Maybe, maybe not. First, we would have to see if the bank-owner will even consider an FHA offer; sometimes they would rather just wait for an all-cash investor than bring the home up to FHA-lendable status, which will clearly require some repairs in this case. Might a 203K loan provide money for repairs? We'd have to discuss with your lender. What else might be wrong that we aren't seeing in a casual tour? It is highly likely that the owners have not kept up with routine maintenance in the time leading up to the foreclosure.
Are all foreclosure properties this bad? No, they aren't. Should we give up on finding one? No, absolutely not. But it will take some time and determination. We may have to, if not kiss, at least visit a lot of frogs before we find your prince of a home.
Comments (4)Subscribe to CommentsComment