Should You Buy a Distressed  Property?

Even in today's healthy real estate market, foreclosures are still available. Many banks have begun rehabbing foreclosed homes prior to the property being listed. These rejuvenated foreclosures are often at no better value than any other re-sale home on the market. Therefore, buyers wishing to build sweat equity should focus on non-rehabbed properties. It's important to work with an agent who understands the diversity of a foreclosure sale and can successfully navigate you through the process! Below we have created a list of some helpful foreclosure facts:

• Just because a home is listed as a foreclosure does not necessarily mean that it's a "good deal!

• Due to the small percentage of foreclosures in our area, often these listings will generate multiple-offer situations; there can be heavy competition! Our experienced Agents will guide you through this process.

• Buyers are entitled to all inspections even though they are only for the buyer's knowledge. The banks will not renegotiate based on the findings of the home inspection. Should your home inspection yield unfavorable results, you have the right to cancel the contract and have your earnest money refunded.

• Most properties which need rehab will require a special FHA renovation loan, often referred to as a 203k or 203b program. Our Agents can refer you to expert loan officers that are specialists in these fields.

• Depending on the selling entity, first-time buyers may have priority in the offer process.

• Depending on the selling entity, buyers may be able to negotiate a seller credit for closing costs.

• Banks often dictates the amount of earnest money deposit required.

• No Due Diligence deposit required.

• All foreclosures are sold as-is.

Buying a foreclosed property can be a great investment either for building equity, utilizing the property in a rental portfolio or as a real estate flip! But foreclosures only encompass a small amount of the investment market. Our agents can guide you to other distressed properties such as short-sales, non-MLS wholesale deals, and properties which are listed for traditional sale and suffer from deferred maintenance or cosmetic dating. Our agents have connections with many investors and investor buyers in our great state. Let our knowledge and experience help you build the foundation for your financial future through real estate investing!