If you’ve recently started your search for real estate, you’ve likely noticed a significant number of foreclosures on the market. These properties are often available at a much lower price than other similar properties.
At the end of the day, the goal is to get the best value. Sometimes, a foreclosure offers just that, but in other cases, buying a foreclosed piece of real estate is more trouble than treasure.
The Pros of Purchasing Foreclosed Property
The most obvious benefit to buying a foreclosure is the reduced price. Due to various circumstances, banks are often willing to part with these homes at a loss. Their loss can be your gain.
Similar to the foreclosure is a pre-foreclosure. This type of property is just about to go into foreclosure but is still technically owned by an individual. In this unique situation, you may be able to expedite the process and shorten the escrow period.
The Cons of Purchasing a Foreclosure
While the lower price is appealing, sometimes it’s also warranted. Whether due to normal lack of maintenance or to vandalism, foreclosures tend to require more restoration. Make sure you have a strong understanding of what repairs will be needed before committing to buy.
Because banks typically want to get the property off their books as soon as possible, they aren’t often willing to pay for repairs. If you do choose to pursue such reimbursement, the process will slow significantly.
Finally, in many cases the foreclosed properties are still occupied. As the new owner, it becomes your responsibility to carry out evictions and potentially endure drawn out legal proceedings.
When Considering a Foreclosed Property, Make Your Choice Carefully
Foreclosed properties present unique possibilities and challenges alike. As in any major purchase, make sure you understand any and all stipulations before buying.
If you have questions about the properties you see on our website and you’d like to learn more about your options as a buyer, call The Marshall today at (801) 566-9500!