Home Buying in Brentwood>Question Details

nunito2010, Home Buyer in Jacksonville, FL

Is it a better deal to purchase a forclosed home? i would like to purchase home in a couple of months and i would like to know all the pros and cons.

Asked by nunito2010, Jacksonville, FL Sat Jan 4, 2014

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As the real estate market continues to strengthen so too does the position of the lender when it comes to selling distressed property. Foreclosure prices have rallied back and in many cases are no better a deal than a normal sale.

One thing often overlooked is the fact that most "foreclosed" sales represent properties that may have been vacant and neglected for a long period of time. This in itself can result in problems that could go undetected for a long while after a new owner takes ownership. Smart buyers of these properties would be well advised to conduct every available inspection known in an effort to unveil potential troubles.

From my perspective, buyers should explore the entire market, not focusing on any single segment to be certain they are getting the home they really want. Because a home is a "foreclosure" doesn't necessarily mean it is guaranteed to be the best value.

Good luck,

Bill
2 votes Thank Flag Link Sat Jan 4, 2014
Banks are trying to get the most money for the house. They are not going to give it away. In many cases they will not accept a lower price than list price. I believe most of them have a strict formula for when they will reduce the price and won't deflect from it.

Also with bank owned houses there is no sellers disclosure. So you don't know how old the roof is, if the AC, plumbing or if electric is working well and up to par. Often the banks don't have the water and electricity on and the buyer must pay to have it connected for their inspection. then if something is found to be wrong they usually will not fix it and are reluctant to even reduce the price.

Think of it this way...Most bank owned houses were owned by someone who lost their house because of money issues. So the last year or more they lived in that house they probably didn't repair plumbing or roof leaks or any other maintenance issues as they knew they were probably losing their house.

If you need to purchase in a couple of months the time to start looking is now. Most transactions will take about 6-8 weeks to close.

Please call me to discuss this further or to help you in your search. I am happy to help.
1 vote Thank Flag Link Sat Jan 4, 2014
Thank you very much:-)
Flag Sat Jan 4, 2014
Back in the day purchasing a foreclosure was instant equity. Not always the case these days. Banks, Fannie, Freddie, HUD, they're all looking for Market value. But there are some deals to be had there just alittle harder to find. Check out homepath.com, hudhomestore.com or just find a good Realtor. Realtor help is of no cost to you and they do the searching for you. :) Let me know if you could use some assistance.

Have a Great Day
1 vote Thank Flag Link Sat Jan 4, 2014
It will take around 45 days from contract to closing. So you should begin looking 3 to 6 months prior to when you need to be moved in. Before that you must speak to a lender (or two) and get your loan pre-approval docs in order.

There are few foreclosures left on the market, most of the sales currently are normal re-sales, but there are still good deals to be found. Stay away from short-sales and you will save yourself time and frustrations. The advantages of a foreclosure is that what you see is what you get and it can move fast. The disadvantage (or opportunity) is that you will have to spent some money to bring the home up to your likes and standards...which most people do anyway after a home purchase. You will have the same inspections opportunity as with a normal re-sale, and if you find something at inspection to expensive to repair you can always walk away and get your deposit back.

If you want a home where you need to do nothing other than bring your luggage and relax, then a re-sale is what you need to look for. Hope this helps.

Tony Vega
0 votes Thank Flag Link Sat Jan 4, 2014
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