Foreclosures can offer some home buyers big bargains, with the typical discount on a foreclosure about 19 percent, according to National Association of REALTORS® data from May. But buyers should be careful not to be guided by price alone, housing experts warn.
“Distressed properties can have great appeal,” says Wendy Forsythe, executive vice president at Atlantic Pacific Real Estate. “Discounted prices and historically low interest rates make these homes affordable to many families who might otherwise not be able to buy a property. But buyers also need to be selective because not every distressed property is a bargain.”
Home buyers need to be aware of some of the following issues with foreclosures before they buy, according to Atlantic Pacific Real Estate, a real estate brokerage with offices in 22 states:
Commentary from Bob Karp of Karp Properties LLC: Many buyers think all “distressed” properties are a bargain. As stated in the article, they often come at a discount. However, even the discount may not be that great when compared to comparable properties. It is important to work with a Realtor in your area who can give you an idea of the market value of the distressed property. You also need an experienced agent who understands dealing with banks or the lender which can often be difficult, time-consuming and complex. Finally, using an agent will help ensure that all the proper inspections are done. Even though most distressed properties are sold “as is” you still should do an inspection and even ask for major items to be repaired. Often the sellers will agree to some repairs. You do not lose anything by asking. Here in Sierra Vista & Hereford, Arizona we have some distressed properties that can be purchased at reasonable prices. Contact our office for more information.