You've heard all the national news - foreclosures are rampant in the US and projected to increase this year. So, what does that mean for a homebuyer? Can you really get a good deal on a foreclosure?
The answer is YES and NO.
YES - there are deals to be had. If you are a cash buyer looking for investment property, or a homebuyer with at least 20% downpayment looking for a good deal on your next home, there are some good deals out there. Make your offer based on the condition of the property, the cost of making repairs and the value of similar properties in the area. Be prepared to move quickly once your contract is accepted.
NO - If you are a homebuyer looking for a home with a minimum downpayment (under 20%) - many bank-owned properties are in bad condition and being sold "as is." Mortgage companies lending money to buyers with less than 20% downpayment generally will not issue a mortgage on a home needing repairs unless the repairs are cosmetic in nature and have no bearing on the value or structural integrity of the home.
Our advice to clients is this -
If you are looking for investment property and have the money or skills necessary to make repairs on a property, take a look at foreclosures - there are gems to be had.
If you are a homebuyer with minimum downpayment and little to no extra savings, don't waste your time or inspection money. There are a lot of nice homes on the market that should fit your needs.
If you are interested in buying or selling a home in the greater Kansas City area - give us a call. Nobody works harder to help with all your real estate needs and, we're a lot of fun!
Morgan Rathmel (913) 269-2075
Marianne Damon (913) 221-5272
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