Foreclosures - Be careful what you wish for...

By
Real Estate Agent with Montgomery and Moore 20490

"Foreclosure" has become a buzz word for buyers today.  "we want to look at foreclosures" or "can you send me some information on foreclosures?".  I actually send out a list via email of foreclosures in my area that I compile by mining the data on my MLS;  looking for key phrases like "bank owned" or "addendum must be included with offer".  However, is a foreclosure a smart purchase for the long run?

 I advise buyers to look at the neighborhood and the surrounding area before committing to purchase a foreclosure, regardless of price.  Buying in a neighborhood that is in free fall is like trying to catch a falling sword (timing is everything)  If that foreclosed home is in an area where there are multiple foreclosures, I would look elsewhere.  Sure the price is cheap, but you can also get cheap tickets to board a sinking ship.  

 Buyers would be better off with a smart purchase rather than good deal... look for a reasonably priced home in a rock solid neighborhood.  

Posted by

Tripp Montgomery

Agent

803-272-8595

wfmontgomery@gmail.com

www.camdenhomes4sale.com

Comments (3)

Mary Macy
Top Agents Atlanta Metro - Roswell, GA
Top Agents Atlanta Metro

There are a lot of owner occupied homes that are much, much better buys than foreclosures, and they don't have title problems that cause them not to close, conditions that result in failing inspections, and so on.  Buyers need to be coached in this market to look at everything, but again, some buyers are going to do what they are going to do with or without you.  You can just give them all the information and then let them make a decision.

Jul 20, 2010 02:35 AM
Steve, Joel & Steve A. Chain
Chain Real Estate Investments & Mortgage, Steve & Joel Chain - Cottonwood, CA

Tripp,

We get a lot of folks asking for additional information on homes that "a certain" real estate agregator lists like they are for sale for $5K to $7K in a $180K market.  Unfortunately when it sounds too good to be true it... Hopefully more buyers will heed your advice. "Find a reasonably priced home in a rock solid neighborhood".

Steve

Jul 20, 2010 02:41 AM
Al Raymondi
Ocean View Realty Group in Ormond By The Sea Florida - Ormond Beach, FL
Ormond By The Sea Florida - Home and Condo Sales

Good advice Tripp.  The catching of a falling sword is a good analogy for buying in a declining market.

Jul 20, 2010 02:50 AM