Are Foreclosures a good deal?

I have people ask me often, "Are Foreclosures a good deal?"  The answer is..... They can be.

 

A foreclosed home is just like any other home in this manner.

  • They are made of sticks and stones (and shingles, nails, glue etc...)
  • They are in a neighborhood with other homes
  • They are in the same schools as other homes

So what is the difference?  Well the home owners obviously went through some financial hard times.  So many times these homes are going to have deferred maintenance.  I find that the vast majority of the time the homes are going to need paint and flooring, and other very minor repairs.  Sometimes, they need much more.

With all of my clients I recommend they have the home professionally inspected, foreclosure or not.  Get a "punch list" of all the items that will need to be repaired.  Most of the items on an inspection list are minor.  If you find something that is substantial, such as foundation, plumbing, roofing or HVAC, you will be able to make a better decision. 

When purchasing a foreclosure, keep in mind the equity position you may have compared to the work that may be necessary.  For instance, I had a client that walked away from $30,000 in equity on a $110,000 house because it needed $5,000 worth of work.  I did not agree with him, but it was his decision to make.  If you want the equity, be prepared for a little work.  If work is not something you want to worry about in your new home, then expect a less equity with a foreclosure.  Even with little work, finding equity is still possible. 

You can search foreclosures in San Antonio at:

www.SAOnlineForeclosures.com

 

If you want the equity in the home you want to live in, or want to invest, Foreclosures may be in your future, and I can help make that a reality for you.