Looking for a good deal on a house? If you're not picky, have some time and know-how, a bank owned foreclosure may be a good option for you.
According to National Mortgage Professional Magazine, sales of foreclosures are slowly creeping up. In September, the sale of bank-owned properties rose 2%, but there are still a lot of these properties on the market, available for a good price. Nationally, distressed houses (foreclosures) sold for a median price of $112,000 last month, 41% less than the median price of non-distressed houses, which came in at $189,000.
If you're shopping for property and are considering foreclosures, consider some of these tips:
- Find a realtor who knows a lot about foreclosures. They often have relationships with the banks that help make the process faster and smoother than a typical transaction.
- Remember these houses are sold as-is. Some problems you can see, others aren't so obvious. Leave some wiggle room in your budget for surprises.
- Study comparable properties in the area to make sure you're getting a good deal. Just because it's a foreclosure doesn't mean it's priced right. Do your homework.
- Have financing worked out (mortgage pre-approval) so that you won't be slowed down when you find the right property. Good deals are snatched up fast.
If you are willing to put some time and work into a property, a foreclosure or short sale might be the way to go. Low interest rates and a below-market value price make these houses a good investment. To see what is available in your area, contact us.