Considering Purchasing Bradenton Foreclosures? Here’s a Checklist

By
Real Estate Agent with Remax Alliance Group

A professional approach has to be undertaken when going for a Bradenton foreclosure purchase. The price of the foreclosed home may look like a bargain, but it is easy to come out on the losing end if a purchase is not carefully considered. Bankers and financial analysts call this process as doing due diligence on the property.

Simply put, this process is just having and accomplishing a detailed checklist of things to do when buying a foreclosure. This procedure is necessary in order to separate the chaff from the grain, so to speak. There are just so many foreclosed properties currently on the market it can be difficult knowing where to start. Deals may even be negotiated in pre-foreclosures, otherwise known as short sales, with homeowners trying to get the most out of their property about to be foreclosed.

In 2008 alone, close to 4 million foreclosures were filed in the US, a direct consequence of the worldwide economic recession. Among the states which registered the highest incidence of foreclosures are Florida, Ohio, Michigan, and California. Within Florida, places which can be included in a checklist for the localities to focus on a foreclosure purchase that offer some amazing homes is Bradenton and near-by Sarasota.

Following the law of supply and demand, the prices of foreclosed homes are relatively lower in these areas due to the many second homes that were lost to banks. A high incidence of foreclosures even tends to depress the prices of the entire real estate market in a certain locality and this certainly holds true for The Bradenton Florida area, we have seen real estate values drop as much as 47% from their 2005 highs.

Any Bradenton foreclosures checklist has to go in specific details and identify the cost of everything that will go into the acquisition and repair of a foreclosed home to make it habitable. These costs will consist not only of the acquisition price and needed repairs, but also consideration for the possible unpaid Home Owners Association fees or any undiscovered liens. Typically banks will satisfy all encumbrances and offer properties for sale that are believed to have a clean title but it is worth verifying the title is in fact clean. As we have seen recently banks have pulled properties off the markets for inconsistencies in the paperwork executed during the foreclosure process.

The pricing and pre-inspection of the property being considered, necessary due diligence should definitely be carried out with the advice of these experts: A professional real estate appraiser, for instance, can help determine the fair market value of a foreclosed property. Similarly, a building contractor can provide the estimates of cost of repairs that will definitely go into acquiring a foreclosed home. And most definately, find a title company that will guarantee title.
      
As important as these costs, a checklist should also include certain intangibles that all home buyers invariably consider. These are the community conditions and amenities best answered by questions like: Is the neighborhood friendly? Does it have all the support facilities for modern-day living? Is it close to city and area attractions? How strong is the rental market in the neighborhood?

In Bradenton Florida, where acquisition opportunities are aplenty as cited earlier, you have the amenities that will certainly assist in a high resale value for the property in the future. The areas of Bradenton and Sarasota are noted for many amenities such as life and leisure centers, fabulous beaches, water sport activities, and warm climate. Despite the setbacks in the economy, this area still remains highly desirable for second home and retirement home purchases. This demand, which will always be there, bodes well for Bradenton real estate resale values as well as the liquidity of the investment.

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