When Buying a Foreclosure is the Right Decision

Real Estate Agent with Phyllis Frankel Realty Group | Ponte Vedra Real Estate

With the market still inundated with foreclosures, you may have wondered whether buying a foreclosure is right for you. Although purchasing a Phyllis Frankel Realty Group foreclosure could result in a great deal on your first (or next) home, there are a few misconceptions about foreclosures. Therefore, purchasing a foreclosure is not always the best option for many homebuyers. Here are the top three reasons when buying a foreclosure is the right decision:

    1. You’re willing to wait – Any time a property is bank owned, such as in a foreclosure situation, you can expect the process of purchasing that property to take much longer. The red tape involved with purchasing a foreclosure may turn many buyers off; therefore, it is best to understand that buying a foreclosed home can take a considerable amount of time. If you have the time, and you’re not under the gun to buy quickly, you may want to consider making an offer on a  property foreclosure.


    1. You’re ready to expect the worst – Although some foreclosures are in mint condition, just as many are not. Some homes in foreclosure are in poor condition because the homeowners struggled financially in the months or even years preceding the foreclosure. Other homes in foreclosure were purposely damaged when the homeowners left the home. Whatever the reason, it is important to understand that some foreclosed homes for sale may need more than a little TLC.


  1. You’re not expecting a steal – Can you score a good deal on a foreclosure? Absolutely. Can you get the home for pennies on the dollar? Don’t hold your breath. One of the most common misconceptions regarding foreclosures is that the buyer walks away buying a $200,000 home for $100,000; but this just isn’t the case. There is a good chance that you can get the home for less than other comparables in the neighborhood, but remember that the bank is still looking to recoup their loss and they usually have no plans of letting a home go for far less than its appraised value.

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