Foreclosed Homes Mean Big Discounts

houseforsale250.jpg

Foreclosed homes are available at deep discounts, but buyer beware.

Big Cuts on Home Prices

According to the National Association of Realtors, foreclosed houses are selling for about 15 to 20 percent less than comparable homes in the same neighborhood.

Foreclosed Homes on the Market through Next Year

There are a lot of foreclosed house on the market, and there are a lot more to come. Though there are hundreds of thousands of foreclosed listings on the housing market now, banks have been careful to avoid a flood that would drop their prices even further. About five hundred thousand more foreclosed homes are expected to hit the market next year.

Home Buyer Beware

Buying a foreclosed home in a good neighborhood has its risks and challenges. If you are hoping to find the best deal on a foreclosed home, the first item on your to-do list is to find a broker with the best listings. You and that broker will need to make a twice-daily practice of checking for new listings and immediately visiting those new properties. Cold hard cash could pose an obstacle on two fronts, before and after the sale. First, even in this economy, there are still cash buyers who are aggressively looking for deals and will more than likely get the contract before a prospective buyer working with a home loan. Secondly, many of these foreclosed houses are sold "as is" and will require a lot more money after the sale. Beware of deals too good to be true. There's probably an expensive problem waiting for your money after you've signed all the papers.

Home Buying Options

When buying a foreclosed home, you have a few additional home buying options that are unique to acquiring a so-called distressed property: Through a pre-foreclosure sale. At a public auction - a risky option, because you can't tour the inside of the property. Through a bank that has taken ownership of the home – known as a real estate owned property, or R.E.O.

Work with a broker that knows how to find the right home and the best deal for you through these home-buying venues.

Related Articles

Source: Neighborhood Link
Search All Articles
Related Articles
How To Save On Closing Costs
HomecashsmMany are shocked when they learn how much they owe to close on their mortgage. But there are ways to save before you sign on th
What are the FHA Loan Requirements?
FhaThe FHA makes it easy to secure a home loan. The FHA Loan Requirements are described in detail in this article.
Homeowners Insurance
HomeinstTips on how to shop for homeowners insurance and save money-also avice on flood insurance
Asbestos
Asbestosdanger2_thAn information guide on asbestos and asbestos abatement. Also discusses vermiculite and how it relates to asbestos.

More...
Most Popular
Ask Before You Alter
Askbefore1_thInformation for homeowners altering their property within deed restriction guidelines; sample forms available
HOA Website Can Save Money Increase Communication
PaperdollssmAn HOA website can help an HOA save money and increase communication. See How to...
Should You Pay Off Your Mortgage?
HomesmallFind out if paying off your mortgage makes sense for you.
Things to do Before Buying a House
NewhomeBuying a house is only the first of many new adventures.

More...

Zip Code Profiler

Neighborhoods, Home Values, Schools, City & State Data, Sex Offender Lists, more.

Instant Home Value!