Foreclosures - Pros & Cons Over Using a Realtor
I’m know you’re in tune to the worries of recession and the real estate crisis going on in the US. This has caused a flooding of foreclosures that is surpassing previous highs. Although you still see older foreclosed homes in run down areas, what’s different during this crisis is the quality of forclosed homes and neighborhoods they reside have drastically improved. Even some of the nice estates in wealthy neighborhoods can be found at government auctions for prices much lower than market value.
If you are considering buying a foreclosed home from a government auction then you couldn’t be lookin at a better time then now. Before you do though you should be aware of the advantages and disadvantages of buying foreclosures over using a realtor for a non-foreclosure property.
The advantages of buying a foreclosed or pre-foreclosed property are:
- The great prices available on foreclosed/pre-foreclosed homes is obviously the number one advantage.
- Many homes are in good condition for much less than their market value.
- Variety and selection is better then it has ever been.
- No Realtors to have to go through or agency fees to pay (although you should still get advice from someone who knows something about real estate).
- You are not required to pay certain insurances.
- Good property investment to rent or resell.
- Not as risky as stock investing, plus you will own something of physical worth.
Disadvantages:
- Mortgages may be harder to get (unless you have great credit with your bank).
- You need to be aware of any existing liens, judgements, or unpaid taxes still on the property.
The most important thing is to make sure that the home you’re interested in is clear of all liens. You should also find out in advance what payment options the government auction will allow, and if required have your bank loan in place ahead of time. Make sure you have some decent cash saved up just in case, just as you would for purchasing a house through an agency.
Government auctions are being held all around the US and Canada. You can find information about upcoming auctions and pre-foreclosures (homes you can buy before the auction) on the internet along with detailed listings on the homes that will be for sale. Purchasing a home through a government auction can be a very rewarding adventure but doing your research ahead of time will allow you to be prepared. In fact I would recommend attending a few auctions before you are ready to purchase so that you become familiar with that environment.
