Buying a Foreclosure Property - Always a Good Buy?

By
Real Estate Agent with Hunter-Broker

If your finances are "iffy", then buying is not a good option, even if it's a foreclosed home.

foreclosure saleForeclosures are not automatically a good buy. Banks have appraisals or broker price opinions, and they try hard to get the market value indicated by these "appraisals". The worst decision you could make is to buy if you may be forced to sell back into this market. The transaction costs are high, and this would likely cost you serious money.

Sometimes, non-foreclosures (or perhaps "not-yet foreclosures") can yield a good buy. With foreclosures, well-priced homes can go quickly because the whole buying community knows about them, and most of the interested buyers will NOT get it (only one will, after all). With non-foreclosures, a persistent broker may be able to get a response from a seller that provides YOU, and only you, with a great deal, with no other buyer competition.

But, in the end, you still need the financial strength to NOT be forced to sell until you want to.
If you might be forced to resell shortly after buying, then you should pass, and not buy.

To access a list of Bank Foreclosures, Company Owned Properties and other Distress Sales in your area, tell us what you're looking for.

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Thanks,

Terry Hunter, MS Economics
Owner/Broker ePro
Terry@ Hunter-Broker.com
Mobile: 949-278-1595

Hunter-Broker.com
DRE License # 00573681

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Rainer
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Victor Zuniga
Berkshire Hathaway Home Services California Properties - San Diego, CA

Very well put. Not everyone should buy but those that can and want to better take advantage of the real estate climate.

Nov 22, 2010 06:35 AM #1
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Rainer
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Terry Hunter

MS Economics
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