Don't show me any foreclosures -- they're money pits!

By
Real Estate Agent with BlueCoast Realty Corporation

Don't show me any foreclosures -- they're money pits!

Image of Money PitYou're right, foreclosures CAN be a money pit -- but certainly not always.  And if you're not even considering buying a foreclosure in Wilmington NC, you're missing out on some fantastic deals!  In fact, Wilmington NC currently has 99 Bank-Owned homes available with an average asking price of $212,018.  When compared to the 2,000+ non bank-owned homes with an average listing price of $382,739 you can see there are some real deals to be had.

Yes, foreclosures sell "as-is".  This means that most likely the bank is not going to do any work to the property.  It has nothing to do with the condition.  Heck, the bank most likely has no idea of the condition, it has to do with mitigating the loss they've already taken.  The bank has already lost a huge chunk of money on the house, to spend anymore wouldn't be prudent. 

But guess what?  If you're buying a foreclosure in Wilmington NC, you can still have a Home Inspection!  In fact, if you're working with me, it's something you're going to hear whether you buy a foreclosure or a new construction:  HAVE A HOME INSPECTION!  You can't expect the bank to make any repairs, unless maybe it's something that must be done so a Buyer can get a mortgage, but you will be forewarned of any structural or cosmetic defects and will be able to make an educated decision about going forward. 

Not to mention -- you'll be getting such a great deal, you'll be ahead of the game right from the start.  You'll have the chance to gain almost instant equity and you'll be a new favorite neighbor!  Every time a foreclosure comes off the books, our community benefits and our economy strengthens. Image of dancers

It's like going to a school dance.  Everyone thinks the "pretty ones" are the ones to admire.  They ignore the one in the corner, assuming they don't know how to dance.  How many times were we wrong about that?  Consider a foreclosure to be the one in the corner, just waiting to come out of their shell and show what they're really made of.  Give yourself a chance to be ahead of the curve -- consider buying a foreclosure in Wilmington NC.

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When you're ready to buy or sell a home in Wilmington, Wrightsville Beach, Carolina Beach or Kure Beach NC, give me a call.  Lets work together to achieve your goals!

Tish Lloyd, REALTOR®

Broker

NC Real Estate Lic. 269076

Realty World Cape Fear

1119-A Military Cutoff Road

Wilmington NC 28405

910.547.1446


 
  

 
 
 
 
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Comments (33)

Joni Bailey
101 Main St. Realty - Huntsville, TX
Your Huntsville / Lake Livingston Area REALTOR®
I just love the way you think! The one in the corner is often the sweetest! But you will never know if you don't spend the time getting to know her. That's what an inspection is.. Time spent getting to know.... XO
Jun 15, 2011 11:17 AM
Tish Lloyd
BlueCoast Realty Corporation - Wilmington, NC
Broker - Wilmington NC and Surrounding Beaches

Sally ~  We see them every day!

Suzanne ~  You are so right!

Anita ~  A little TLC can equate to some great equity!

Frank & Karen ~  I'm okay with the idea of building equity with a bit of paint and a brush -- maybe planting a bush or two . . .

Mitch ~  Thanks!  We all need to help with absorption, if we're ever going to see a solid recovery.

Liz & Bill ~  It's important to consider all options and prioritize.

Donna ~  Must admit, that's one of the reasons we preview before showing . . .

William ~  That's a bit frustrating, to say the least.

Jun 15, 2011 11:32 AM
Tish Lloyd
BlueCoast Realty Corporation - Wilmington, NC
Broker - Wilmington NC and Surrounding Beaches

Kevin ~  Great observation and well said!!!!  LOL!!!

Christine ~  I've got a very nice one right now.  Honestly, I think it may be more of an Agent issue, than a Buyer issue.

Diane ~  You make an excellent point; thanks.

Lisa ~  Seriously, one house at a time is right!

Juli ~  Appreciate your observations; thanks.

Joni ~  Spot on!!!  Thanks.

 

Jun 15, 2011 11:37 AM
Roger D. Mucci
Shaken...with a Twist 216.633.2092 - Euclid, OH
Lets shake things up at your home today!

Like anything else, I'm sure they are "case by case" scenarios with foreclosures.  Excellent points my friend.  My turn to say "thanks for sharing"..................

Jun 15, 2011 02:02 PM
Lyn Sims
Schaumburg, IL
Real Estate Agent Retired

Tish: Great example given about strenghtening the area & getting a good deal to boot! As you say, one house at a time.

Jun 15, 2011 02:46 PM
Violetta Polyakov
Florida Home Consulting - Мы Говорим По Русски - Boynton Beach, FL
Broker/Owner

Foreclosures are not for everyone but I had a very good luck buying and selling them and have very happy owners and investors who are glad they went with foreclosure. 

Jun 15, 2011 02:50 PM
Jayne Williamson, REALTOR, Broker, GRI
Keller Williams Realty Mountain Partners, Hendersonville, NC - Hendersonville, NC

Not all foreclosures are trashed.  There are some that people just walked away from and are still in decent shape.  You are right...always inspect no matter what!  Great post!

Jun 15, 2011 02:58 PM
Cathy Perry
RedKey Realty Leaders - Wildwood, MO

I'll be negotiating for radon mitigation tomorrow; hope the bank (which is at least local) will view it as something worthy of their money.  My buyers are willing to deal with the other issues to get the house, which is a great value for them.  

Jun 15, 2011 03:00 PM
Anne Richards
Short Sale Buyers and Negotiators - Los Angeles, CA

Get yourself a stable full of investor buyers and show them some foreclosures that have been on the market 90+ days.  Good investors will oay cash, fix the property, and re-sell it,thus creating a retail comp in the neighborhood.

Jun 15, 2011 03:07 PM
Carlos Evans
Keller Williams Capital Properties - Washington, DC

 Good post.  These properties can be good opportunities with the right investor(s) clients.  The worst they look the deeper the is discount.  I am writing an offer tonight on a bank owned for $175k all-cash no contingencies, close in 7-10 days.  Keep selling!

Jun 15, 2011 04:22 PM
Ruby Lee Sweeting
Darville Wong Associates Realty Bahamas
Your Bahamas Agent for Relocations & Second Homes

Tish, thanks for the new perspective - maybe there is some value in pushing foreclosures in my area (Bahamas) after all; there's certainly lots of them around.

Jun 15, 2011 05:38 PM
Dianne Goode
Raleigh Cary Realty - Raleigh, NC
Realtor/Broker

There's a proverb that says, "All generalizations are untrue, including this one."

I get equally exasperated with clients who think the ONLY good value is going to be a distressed property!  I've seen amazing deals come quietly on the market in the usual way .. sell in a day or two .. and be gone.

Jun 16, 2011 12:14 AM
Tish Lloyd
BlueCoast Realty Corporation - Wilmington, NC
Broker - Wilmington NC and Surrounding Beaches

Roger ~  Great point, as every sale is a case-by-case scenario.

Lyn ~  Thanks!

Violetta ~  I agree -- so glad to hear you've had such success!  Keep up the good work!

Jayne ~  Have seen some foreclosures which are in excellent shape!

Cathy ~  Keeping our fingers crossed for you -- that's such a simple remediation and I believe they'll really have to do it unless they want to continue to own a home which is uninhabitable.

Anne ~  Excellent point!!!  Now, where did I put that list . . .

Carlos ~  That's wonderful news -- keep writing those contracts!!!!!!!

Ruby ~  In the Bahamas; really?  I'm thinking you may need a new assistant -- where do I apply?

Dianne ~  Amen!!!  A good property, in a good location, good condition which is priced right is just that -- matters not whether it's a short sale, foreclosure or a smart seller.  Now, how do we get people to trust our advice?!?  Appreciate your input -- thanks for stopping by!

 

Jun 16, 2011 12:56 AM
Don Sabinske
Don Sabinske, Sabinske & Associates Inc. - Zimmerman, MN
Sabinske & Associates Inc.

Many issues are cosmetic, but issues that affect livability will often be handled by the investor.  Thanks for your post which brought some great comments. 

Jun 16, 2011 01:55 AM
Charita Cadenhead
eXp Realty - Birmingham, AL
Serving Jefferson and Shelby Counties (Alabama)

Tish with the exception of investors (sometimes), buyers almost always have misconceptions about buying foreclosures.  More than with any other types of transaction, the agent needs to go above the call of duty in explaining the true nature of foreclosures and short sales.

Jun 16, 2011 03:40 AM
Anne Richards
Short Sale Buyers and Negotiators - Los Angeles, CA

Tish:  I am sure there are MANY investors in your area who would love to work with you. You could also go to a local Real Estate Investor club to find investor clients.

Jun 16, 2011 04:16 AM
Ruby Lee Sweeting
Darville Wong Associates Realty Bahamas
Your Bahamas Agent for Relocations & Second Homes

Tish - I'll be happy to be your assistant...plan to visit but be sure to read my AR Blog on 'visiting/relocating to The Bahamas' (http://activerain.com/blogs/thebahamasagent) first. We'd love to see you!

Jun 16, 2011 06:44 AM
Susan Brown
Fonville Morisey, a Long and Foster Company - Cary, NC
REALTOR - Cary NC Homes for Sale

Hi Tish--One of my smoothest transactions was a foreclosure--it was a cute little house, priced really well for my first-time buyers, and it passed inspection with flying colors!  We didn't have to dicker with the seller about repairs AND it came with an agent bonus!  (Can't complain about those!)  And they couldn't be happier in their new home!

Jun 16, 2011 11:35 AM
Patricia Beck
RE/MAX Properties, Inc., ABR, GRI, SRES - Colorado Springs, CO
Colorado Springs Realty

Many of them don't need a whole lot of work either.  I'm noticing some banks are starting to make certain repairs that may affect the loan like if the home needs a new roof.

Jun 17, 2011 02:45 AM
Gene Riemenschneider
Home Point Real Estate - Brentwood, CA
Turning Houses into Homes

I heard there is a trend with some first time buyers looking at homes that are fixed up a little better.  They cannot aford to fix them after buying them so they want them in good shape.

Jun 17, 2011 05:14 PM