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Richmond, VA - Foreclosures offer opportunities for cautious buyers

By Phil Victor

Real Estate Agent with Top Tier Properties

December 12, 2008 03:48 AM

Foreclosures offer opportunities for cautious buyers - by Ryan Nobles, WWBT NBC 12

RICHMOND, VA (NBC12) - New numbers released show more foreclosures on the market in Virginia. While the idea of purchasing a home that generally goes for a cheaper price sounds enticing, it does have its risks.

According to the agency, Realty-Trac, Virginia foreclosures are up 121 percent since this time last year.

But, before you run out in search of a great deal, take a deep breath, and do your homework.

In any market, the goal is to buy low and to sell high. It is low prices that make foreclosures attractive opportunities for perspective home buyers. But focusing on a low price, may keep someone from ignoring glaring issues.

"It can be very complicated process, there are lots of forms that are involved there are typically not required in traditional contracts," says Phil Victor of Top Tier Properties.

That complicated process means that potential buyers should not expect to swoop in and pick a bargain off of the market.

"Buying a foreclosed home does require a bit of research," says Victor. "You can't just drive around town looking for them because foreclosed homes, like this one on Garland Avenue, don't have signs out front."

Instead buyers are drawn to websites filled potential bargains. Bargains that still require some work before they become right deal for you.

"If the numbers make sense, being patient, over time you will find the right property," says Victor.

Victor from Top Tier Properties says that many potential clients looking for a foreclosure are in search of a quick deal. But closing a deal quickly, still has to include patience.

"I think a lot of the problems that exist today are because people jumped into fast especially when it comes to investment properties or even when it comes to buying foreclosed properties," says Victor.

But, taking the time to wait and spring for the right house, at the right time, could lead to getting a great house, at a price way below market value.

Many foreclosed homes are sold "as is" meaning if you find a problem after you take control of the property you are out of luck. Victor says, when buying a foreclosure, you should consult an attorney and a real estate agent.

And the U.S. Department of Housing and Urban Development, which deals with many foreclosures, has a website that outlines all the homes they have available under foreclosure, click here.

To see the full story and the news clip, click here: http://www.nbc12.com/Global/story.asp?s=9509945

From WWBT 12, richmond's NBC affiliate

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Michael McLane

Keller Williams Realty - Richmond, VA

There are certainly some very good points being made in this article. I do agree that the trend is to think that the foreclosed home represents the best buy in the market. Oftentimes, this is not the case. As was mentioned, many of these properties are being sold "as is", which means that costly problems and issues could arise very quickly. That great deal that you thought you were getting may turn out not to be so great after all. Also, there is the time factor involved. Oftentimes, when attempting to purchase a foreclosed home, the buyer must exhibit a great deal of patience. I have seen many instances where buyers become impatient by the waiting on the banks and decide to move on, or something comes up as the transaction progresses and the negotiated purchase price is no longer honored by the bank because of liens against the property. It may actually cost you more than your thought it was going to cost you. All in all, it is just important to know what to expect when deciding to pursue one of these "great deals".

In my experience, especially here in the Richmond Area, it is not necessarily the foreclosed home that represents the "best deal" or the "best investment". Some of the best homes are not foreclosures or short sales at all. The best deals are oftentimes those homes that have been well taken care of and maintained by owners who have decided for one reason or another that they are ready to move on. Let's face it. A home needs to be seen as more than a "great deal". It needs to be viewed as a long term investment. If a buyer is careful and selective and uses the resources at his or her disposal, then they can find a great home at a great price in the market that is just being sold by a homeowner who has decided to move elsewhere.

Apr 08, 2009 02:32 AM

Scott Hoen

Carson City, NV

Carson City Clerk Recorder / Public Administrator

My daughter is in her second year at the University of Richmond -- How do you find Junior and Seniors college students using services to rent or purchase homes rather than live on campus?

Aug 27, 2011 05:32 AM

Phil Victor

Top Tier Properties - Richmond, VA

Richmond, Virginia Homes, Real Estate & Property Management

Thanks for the question, Scott. I have 14 yers of experience renting to college students and I have worked with a number of U of R students over the past few years looking to move off campus. It seems that undergrads and graduate/law students, alike, who move off campus typically look to rent. I have come across graduate students looking to purchase (of course, that was more typical in the old, hot real estate market). I don't think most students go into their rental search looking for someone to help them find a rental. Instead, they start looking on Craigs List, Hotpads, etc. and stumble upon someone like me who can help them search for properties. I do not actively seek out students; however, my rental inventory in that area of Richmond typically attracts them, or the young professional. We only manage properties that are in good condition and we only work with owners who are willing to keep their property up and make the necessary repairs. Let me know how I can be of service to you and/or your daughter here in Richmond.

Aug 30, 2011 06:42 AM

Richmond, VA - Foreclosures offer opportunities for cautious buyers

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