I thought so ... what you saw was not a listing, but a foreclosure notice from RealtyTrac, a reporting service for financially distressed properties. The home could come on the market, or may have already been sold ... information here isnâ€™t always current. RealtyTrac doesnâ€™t list or sell houses, but only compiles data from public sources. Youâ€™d have to subscribe to learn more, but such postings serve no purpose when looking for a home, so save your money.
As for that enticing number â€¦ no, itâ€™s not what youâ€™d pay (as RealtyTrac would like you to assume), but the amount in default. It has no relation whatsoever to the propertyâ€™s value. If it were possible to purchase such a home for so little money, it would be gone in an hour. â€œIf it looks too good to be true â€¦.â€
Infomercials notwithstanding, itâ€™s a myth that anyone can just come on down and pick up a foreclosure for pennies on the dollar. If it were that simple, weâ€™d all be doing it. While they may be aggressively priced at first, the strategy is to attract attention and raise the stakes through a â€œbidding war.â€ Most foreclosures end up selling for more than the asking price and close to actual value. This market is thriving â€¦ nobodyâ€™s giving away houses these days.
Just about all of these places need major renovation, beyond cosmetic updates. Simply put, theyâ€™re best suited for investors with deep pockets. I work with several, and see firsthand 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€¦ from roof to slab, and everything in between. The cost is totally on the buyer and not reimbursable, whether or not the sale closes. 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.