Foreclosure in Huntsville>Question Details

Joseph Merre…, Real Estate Pro in Huntsville, AL

Are foreclosures really a good deal?

Asked by Joseph Merrell, Huntsville, AL Fri Aug 13, 2010

In the market I am in all the forclosures are not a good deal.

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There r many opportunities out there regarding foreclosures. You have to know the area and the values of homes around the foreclosure. Once you assess the value of an area, then you need to assess the cost of repairs needed in the property. The ARV (after repair value) will tell you If there is any profit to be made on the property. If you intend to live in the home, this is also very important. You do not want to over improve on a property where surrounding values are lower. This will help you hedge value for the future, especially if you plan on selling in the near future. Ideally, you want to purchase, fix up the home and be at a competitive value when your done.
There are many factors that have to be examined to determine if a foreclosure is a good buy. Best to get Professional help from a experienced Realtor who has the tools to help you in this process.
Call me for more information @ 256-655-3896
1 vote Thank Flag Link Sun Sep 16, 2012
The only person who "makes-out" in a foreclosure, is the Buyer;
and sometimes, not even the Buyer:

You are buying a "distressed" property; sometimes physically distressed, always emotionally desressed.

There are very few Shortsales or REO's that do not some repairs and/or updating: So, buying a foreclosure is not always the pot-of-gold that some people purport them to be.
If you buy at a $30,000 discount, have to put $20,000 into it and have to wait 2-3 months to get it; how much have you "made out"?

Caviat Emptor
1 vote Thank Flag Link Fri May 4, 2012
YES and NO.

depends on the location. Most in my area are NOT. but when they come back on the market YES they are.

20 years working with foreclosures we have seen them in all types, sizes and values.

Good Luck
0 votes Thank Flag Link Fri May 4, 2012
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