Realtor.com just released findings of a new survey that shows twice as many buyers are looking to purchase foreclosures. They can hold great bargains for both investors and those looking for a new home to live in but what condition is the property really in and if recently updated who did the work?
Everyone seems to be positive on the real estate market today. Analysts and economists are stating that we have firmly hit bottom and in many areas have already well turned the corner. While this together with low home prices and record low mortgage rates continues to drive increased interest in purchasing homes buyers do still need to be careful about what they are buying.
Merrill Lynch recently advised investors that 90% or more of all foreclosure properties were in need of serious work. If you are OK with rehabbing properties yourself there are still good foreclosure deals to be found, even if you may find you are bidding against several competitors. Just know exactly what you are getting into and be ready for more issues and expenses to creep up.
If you aren’t looking to spend your weekends on the job site and months making repairs then keep in mind that many of the properties on the market today have just been renovated. As the market continues to improve this means home buyers can grab great bargains on ‘like new’ properties today and hopefully enjoy a quick windfall in appreciation.
However, you need to know who did the rehab work and that it was done right. Are you familiar with the company and do they have a great track record for doing good repair and construction work? If not, were all of the appropriate permits pulled and is the work really quality stuff? The last thing you want is to move into what looks like a brand new home only to have ot replace flooring, baths and tear down walls to fix plumbing and electrical issues, or even get fines for illegal improvements.
