We are looking to buy a home in a few years and I'm just trying to learn as much as I can to get the best for our money. Foreclosed houses seem like they'd be extra work, but can you find one here and there that just weren't paid b/c of death or something other than run-down and neglected?
2007-06-13 02:30:23 · 4 answers · asked by jk2ambmw 2 in Business & Finance ➔ Renting & Real Estate
Absolutely...Some foreclosed homes are in very bad shape but some are not. My friend recently bought a foreclosed home for about 30,000 under price what other homes in the neighborhood were selling for and all it needed was a new coat of paint and a couple small patches in the bedroom wall. It is definately worth looking at a foreclosure because you never know what you are going to find!
2007-06-13 02:34:54 · answer #1 · answered by sweetgirl 4 · 1⤊ 0⤋
My family owns there own real estate company. We have about 100 homes right now that are subject to a short sale. Most of them are in fairly good condition but some of them have been runned down.
Lets say I own a home for 100k. The bank is about to take the property and they bring it to sheriff sale. It goes up for auction and the house only sells for 30k. By law, I only owe the bank 30k instead of 100k. Thats really the only great way for an investment because you can purchase it for 30k and try to resell it at whatever the market price is.
Lets say I own that same house again for 100k and it hasnt gone to sheriff sale yet. You come to me and offer me 85k for the property. Now we have to contact the bank and see if they will accept the 85k instead of the 100k which is owed but takes a month or two before they will accept or deny the offer.
It's a big mess but it can be a great investment.
2007-06-13 09:39:18 · answer #2 · answered by Marshall 5 · 0⤊ 0⤋
Yes, it can be a good investments (sometimes). Buying any home,even if it's brand new is very expensive. Maybe you are looking for a home in the $200,000 price range. You usually need a down payment (let's say 5%). You also need to pre-pay for your property taxes and home owners insurance. In addition, you need to furnish the home, decorate it, and probably paint it. Usually you will also need to landscape the exterior.
Going forward, you have a mortgage payment, taxes, and maintenance. If you want to sell, typically the sales commision is 6% of the selling price.
Alot of people have made a lot of money in real estate, but its difficult if you don't have $30,000 to start. Have fun aquiring knowledge and start saving!
PS. Make sure your real estate agent is excellent at negotiating for you. That is where you can save the most money!
2007-06-13 10:18:24 · answer #3 · answered by MR MONEY 3 · 0⤊ 1⤋
Foreclosed homes are what they are. You can find them in any condition from downright rat trap to almost perfect. Each needs to be analyzed on its own, just like any conventional property purchase. In the real estate market, you get what you pay for. Lenders aren't willing to take less than they can get for a near perfect property.
2007-06-13 09:37:13 · answer #4 · answered by acermill 7 · 0⤊ 0⤋