This is a Cliff Notes version of a notice posted by RealtyTrac, a reporting service specializing in foreclosures and other financially distressed properties. It is not a listing ... in fact, the home probably isnâ€™t even on the market. It could be offered for sale at some later date, or may have already been sold â€¦ but what you see right now is essentially a notification of default ... nothing more.
RealtyTrac doesnâ€™t actually sell houses, but simply compiles data from several sources, all of it public information. To learn more about a home (the exact address, for example â€¦ itâ€™s intentionally omitted) youâ€™d have to subscribe to the service, although I see no advantage in doing so. The likelihood of purchasing a property based on a RealtyTrac notice is near zero â€¦ and while these postings do serve a purpose for those following market trends, they have little or no value to anyone looking for a home at this time.
As for that very attractive â€œtransfer valueâ€ number â€¦ no, itâ€™s not the price (as RealtyTrac would like for you to assume), but rather the outstanding balance on the mortgage, which would explain why itâ€™s so exact. There is absolutely no connection between that figure and what the property would sell for if it ever came on the market ... itâ€™s not even close. If it were possible to purchase such a home for so little money, Iâ€™d be first in line, checkbook in hand â€¦ and while itâ€™s certainly understandable to be attracted to a potential bargain, if it looks too good to be true â€¦.
Hereâ€™s some information I hope will prove useful (Foreclosures 101, if you will): Itâ€™s a common misconception that these properties can be purchased for pennies on the dollar. If such were the case, those buyers privy to inside information would be gobbling them up before they even hit the market. While they might be aggressively priced to begin with, such a strategy is aimed at attracting attention to the listing, and hopefully raising the stakes through a â€œbidding war.â€ In so many instances, foreclosures end up selling for more than the original asking price, and closer to market value. Just about all of them need considerable work, well beyond cosmetic improvements. In a nutshell, theyâ€™re primarily suited for investors with deep pockets. I work with several, and see firsthand what these places go for, and how much it takes to get them into market-ready condition ... believe me, itâ€™s pretty serious money.
The terms of sale alone should be sufficient to drive most buyers away â€¦ â€œas-is, where-is, with all faults and defects.â€ Bottom line: itâ€™s yours as it sits. In most cases, thereâ€™s an opportunity to inspect the property, but only after a contract is signed â€¦ and since the homes are generally in pretty rough condition, itâ€™s imperative to have all major components checked by experts: roof; foundation; under-slab plumbing; structural integrity; electrical; HVAC; drainage; insect/rodent infestation, etc. The cost of the inspections is totally on the buyer, and none of it is reimbursable, even if the transaction fails to close. Further, in virtually no instance will the lienholder make any allowances for repairs â€¦ â€œas-is, where-isâ€ pretty much sums it up.
Ironically, after all is said and done, you can likely purchase a great home in much better condition for about the same money â€¦ possibly less, considering what youâ€™d have to spend to get one of those places into shape. Iâ€™ve had several such scenarios play out over my years in real estate. It will be my pleasure to work with you toward finding the home that best suits your familyâ€™s needs. My services and expertise come at no cost to you as a buyer.
I trust that this helps. If I may be of further assistance, please feel free to contact me. I look forward to hearing from you.