Are Foreclosures the Best Option For You?

Are Foreclosures the Best Option For You?

The word foreclosure can often make people run in the opposite direction; however, there are plenty of reasons to consider the option. Buyers are normally looking for the best deal when purchasing a new home, so why not get a discounted rate by finding a good foreclosure. KSDK recently reported that St. Louis foreclosure filings have gone up 28% in the past year and the city now has one of the fastest growing foreclosure problems in the nation among large cities. The key to getting a great deal on a foreclosure is to have a plan before diving into the market and be prepared for what will possibly be shown to you. Think to yourself what it is you will be using the home for. Will it be for your personal home? Do you plan on renting it out? Do you want something you can customize by doing a full rehab? Your answers will determine what it is you need to be looking for. The search for a foreclosure is not much different than searching for any other home other than there may be more research that needs to be done. There are cases in which buyer’s have found their dream home in perfect condition for an extremely low rate. There is also the chance of finding a home that has been gutted of all features by the previous owner.
A few things to consider is how long the home has been vacant, the neighborhood, your time, and your budget. If it has already been vacant for awhile then it is a high chance that there are many issues below the surface that will need to be addressed. For example, unused plumbing could cause sewer gas back up and dried out seals which could be a costly repair depending on how damaging it is already. The neighborhood is an important factor in any real estate purchase. If the neighborhood is well maintained, has low crime rates, and low foreclosures then it is safe to say the house your buying was well maintained also. The most important factors to consider before purchasing a foreclosure, is your time and budget. Be realistic. Do not take on a task that you do not have the time or money for. Some foreclosures can come with additional costs. These can be minor cosmetic repairs or complete rehabs. Does the cost for the home still leave room for these repairs in your budget? This is the time to go back to that initial question, what is it that you will be using this home for? Foreclosures can be a great option for those looking for more on a budget. Find a realtor that specializes in foreclosures to help find exactly what it is you’re looking for. Between their expertise and your preparedness, a foreclosure could be your best option.

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