You're better off purchasing from a property wholesaler. Property wholesalers buy all kinds of distressed houses, including foreclosures, then trash them out, clean them up and get them ready for investors and home buyers.
The buyer benefits by not having to deal with garbage, rodents and squatters. The wholesaler makes money on volume. Buying a foreclosure could save you 10s of thousands over a retail home, but buying from a wholesaler will still save you just a little less.
Our company deals in wholesale investment properties in Tampa. Take a look - http://www.btgh.com/tampa-florida-investment-properties/ . This should give you a good idea of the difference between foreclosure, wholesale and retail prices in the Houston area.
If you are looking to build quick equity, I find structurally sound but dated homes with modest deferred maintenance in an area that is revitalizing are the best buy for building quick equity.
Bear Creek to Spring Branch to the Houston Heights depending on your budget. There are many other pockets with upside potential.
Some banks have their homes sold directly by the listing agent, so the normal offer process goes into effect in that event.
The money you should be worried about spending is for repairs and any unforeseen problems.
Have your Realtor run a CMA report, visit the home with a person knowledgeable about repairs, that way you can make a realistic offer.
Foreclosures do not require that they present you a Seller's Disclosure list, nor will they provide you with a survey. If you are doing a loan, your lender will require a survey that will run 300-500 depending on the type of property.
Last, always get a good inspector, and be advised that you may be responsible for turning on all of the utilities in order to get inspections done.
Just about all of these places need work beyond cosmetic updates. Simply put, theyâ€™re best suited for investors with deep pockets. I work with several, and see what it takes to bring such homes to livable condition â€¦ it ainâ€™t cheap.
The terms should suffice to drive all but seasoned buyers away â€¦ â€œas-is, where-is, with all faults.â€ Bottom line: itâ€™s yours as it sits â€¦ although most contracts include an opportunity to inspect the property and void the transaction. These homes are usually in rough shape, so itâ€™s imperative to have them checked thoroughly â€¦ roof to slab. The cost is on the buyer and not reimbursable, even if the sale doesnâ€™t close. The lienholder/seller will make no allowance for repairs â€¦ â€œas-is, where-isâ€ sums it up.
Ironically, you can likely purchase a great home in better condition for about the same money â€¦ possibly less, given what it would cost to get most foreclosures into shape. It will be my pleasure to work with you toward finding that special place which best suits your familyâ€™s needs. There is no cost to you as a buyer. If I may be of assistance, please feel free to contact me. I look forward to hearing from you.
Trend Setter Realty
1. Prior owner did not have enough money maintain the property
2. Bank did not address maintenance issues - based on how long property been on the market
3. Good Realtor can trouble shoot many of these issues with wasting your money on inspection and appraisal , etc.
HOWEVER I have seen foreclosed properties owner/ lender took great care of the property ! Never know each property stands alone based on condition SAME as a typical home purchased .
MYTH of savings - perhaps in other parts of the country however Texas has been healthy market for home sales you don't see foreclosures as often vs. prior years.
Lynn911 Dallas Realtor & Consultant
Multimillion Dollar Sales Producer
http://www.lynn911.com 100's of Dallas homes listed for sale or lease
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