For those of you that think a foreclosure is a cheep way to buy a house, take note of the current trends. In the 3rd quarter of 2010, when foreclosures were in abundance and banks were looking to unload their inventory, the average foreclosure was selling for $76,990. In the 3rd quarter of 2016, the average foreclosure is selling for $180,596. Gone are the days when you could buy a foreclosed house at deep discounts. It's a sellers market and the banks know that. They do not have as many properties on their books and the persons job it is to sell these for the bank is going to sell it at market value and recoup as much of their losses as they can.
Something else a buyer must consider when looking at foreclosed properties: most of them will need repairs. When an owner defaults on their loan, they are doing nothing to maintain the house, especially once they get notice that the bank has started foreclosure procedures. Not only are you going to pay market value, you will need to have money to do the repairs after closing.
And one final consideration: In order to get approved for a mortgage, the house has to be insurable. It must pass a 4 point inspection. Must have 4 years or more life left on the roof, working AC unit, no plumbing issues and no electrical issues. Many foreclosed homes will have one or more of these issues. The banks will not fix anything. The homes are sold as is. Can't get a mortgage if you can't insure the home.
Now there are exceptions, but you need to be realistic about what you can afford and what resources you will have. Trust in your Realtor to guide and advise you when you ask to see homes for sale. And before you even start looking, consult with a lender and only look at homes that are a price range approved by your lender. Need a referral to a lender? Ask your Realtor.
Looking to buy or sell a home in Pinellas County? Call me and I would be happy to talk with you about your goals and how I can help you achieve them. I'm here to help.