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Treasure trove or money pit? The answer may NOT be a mystery.

By
Real Estate Broker/Owner with Richard Weisser Realty

Treasure trove or money pit? The answer may NOT be a mystery.Many real estate buyers today are seeking hidden treasure. Motivated by the media and loaded with enthusiasm, they begin their quests to discover untold riches in the sea of foreclosures and short sales that flood the market.

But in reality, the jewels are few and far between. Most houses are priced based on both the local market and the current condition of the property.

Some apparent bargains need a lot of work. Many have not been properly maintained for years. Always keep in mind that serious financial issues predicate most foreclosures so exercising proper due diligence is essential.

Many of my buyers have opted to forgo distressed sales and have purchased a conventional house.

It takes a lot of the mystery out of the process, and very often they discover that there are many different ways to discover  true “treasure.”

Captain Wayne - Rowlett Real Estate School
Rowlett Real Estate School - Panama City, FL
Rowlett Real Estate School / Owner and Instructor

Well put Richard, Thank you.  Keep up the good work!

Apr 15, 2012 10:32 PM
Ginny Gorman
RI Real Estate Services ~ 401-529-7849~ RI Waterfront Real Estate - North Kingstown, RI
Homes for Sale in Southern RI and beyond

Richard, i love it when buyers send me this house that needs extensive structural work insisting that they need to see it when it is not even within their sphere of accomplishment...veiled bargains is the word...

Apr 15, 2012 10:33 PM
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

i always advice buyers that there are many homes priced to sell and just because it is a foreclosure it does not mean it is a good deal.

Apr 15, 2012 10:33 PM
Cindy Edwards
RE/MAX Checkmate - Johnson City, TN
CRS, GRI, PMN - Northeast Tennessee 423-677-6677

Hi Richard,

There are those "special" buyers/investors" out there that can really pick them out and make it work for them.  But it's not as easy as half the newby investors think it is!

Apr 15, 2012 10:34 PM
Richard Weisser
Richard Weisser Realty - Newnan, GA
Richard Weisser Retired Real Estate Professional

Captain Wayne...

Thanks for the support.

Ginny...

"Sphere of accomplishment." I have never heard that expression before. But it's great and it applies perfectly. You said in three words what I had to ramble on and on about to get the message across! Thanks.

Gita...

VERY often it is not the :best: deal. Thanks so much.

Cindy...

It takes experience AND ready capital to make it work, and not all buyers have both. Thanks.

Apr 15, 2012 10:38 PM
Amanda Christiansen
Christiansen Group Realty (260)704-0843 - Fort Wayne, IN
Christiansen Group Realty

Well said Richard.  Not a big fan of investors, but can appreciate a good deal.                                            

Apr 15, 2012 10:39 PM
Charlie Ragonesi
AllMountainRealty.com - Big Canoe, GA
Homes - Big Canoe, Jasper, North Georgia Pros

Amen Richard. The answer I give folks is simple. I am in this business and see things in real time. If there were these great bargains out there you are speaking of I would buy them

Apr 15, 2012 10:51 PM
Pamela Smith
Award Realty - Sun City West, AZ
Sun City West, Corte Bella, Sun City Grand

Often buyer don't realize what a true bargain is.  They get so caught up in the media, short sales, foreclosures, etc. that they miss out on what they really want.

Apr 15, 2012 11:56 PM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Richard - so true. I came frm the reblog by Lenn.

I am so used to the questions about foreclosures instead of questions about deals.

Apr 16, 2012 12:00 AM
Nancy Conner
Olympia, WA
Olympia/Thurston County WA
Very accurate assessment of the true nature of most of these "bargains". By the time a buyer calculates in cost of rehab/repairs/updating etc. their real investment total isn't gonna look so appealing. And quite a few of these homes can't even be occupied for a while so there's more inconvenience and cost for that eager bargain hunting buyer. (though "bargain"houses can sometimes make a well maintained, ready to move into home shine like the treasure it is in this market.)
Apr 16, 2012 01:25 AM
Gary L. Waters Broker Associate, Bucci Realty
Bucci Realty, Inc. - Melbourne, FL
Eighteen Years Experience in Brevard County

Most of my customers opt for the regular sale...priced fairly and  a lot less unknowns.  Besides the prices are still great!

Apr 16, 2012 03:10 AM
Anna "Banana" Kruchten
HomeSmart Real Estate - Phoenix, AZ
602-380-4886

Oh I could write a book about these so called 'bargains' this past 5 years.  With our area being flooded with mostly foreclosure it was a nitemare finding something decent.  And buyers would see the low price and insist on seeing it....and then they're  mouths would drop in misbelief. They didn't ask to see this type again and took my word on it!

Apr 16, 2012 04:06 AM
Jill Kipnis
Move, Inc. - Westlake Village, CA

Richard, this is well said. That distresesd property with a bargain price may, in essence, be masking the true cost to the owner once you factor in necessary repairs. For a first time home buyer, this may be biting off more than they can chew, especially when other monthly fees are added in as well, such as insurance, HOAs, etc.

Apr 16, 2012 04:30 AM
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

I almost bought a bargain last week.  I took a 2nd longer look, (After my client decided against it) and found a lot mroe work than I have time for.  At first glance it looked like a good deal.

Apr 16, 2012 04:43 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

Well said Richard, a low price does not mean a better deal if there is extensive work to be done.  Many here are avoiding the short sales as well due to the uncertainty of the bank approval process.

Apr 16, 2012 09:42 AM
Tammie White, Broker
Franklin Homes Realty LLC - Franklin, TN
Franklin TN Homes for Sale

Whenever a buyer tels me they want to pursue a foreclosure or short sale, I ask, "Why?" If the response is because they want a deal, I tell them there are plenty of deals to be had with fewer hassles. Then I let them decide.

Apr 16, 2012 01:28 PM