Why You Shouldn’t Buy a Foreclosure

More and more these days I am meeting with buyers who want to buy a foreclosure…or at least think they do.  Although there are good deals to be had, not only are they few and far between but, the risk and complications involved in the purchase of a foreclosure are often not worth it.  Here are the three biggest reasons you should not buy a foreclosure.

1.)    You typically will not have the opportunity to see the interior of the home or have any inspections done.  The property could be a complete disaster inside and cost a fortune to repair.

2.)    You will be expected to pay cash (no loans).  The Summit County Public Trustee will require you to have good funds or the ability to wire transfer the full amount into their bank account within two hours of the auction. 

3.)    Rarely is anyone buying homes in Summit County at auction.  A home that is not purchased on the court house steps will then go back to the bank and eventually be listed for sale as an REO (AKA Bank Owned property).  In 2011 REO properties that sold, sold for 16%-42% less than what the opening bid at auction was.  Furthermore, when purchasing an REO property you have the opportunity to see the interior of the property, have inspections done and get a loan to purchase the home.

If you would like more information on how to invest in distressed properties including Summit County short sales, REO’s and yes even foreclosures, feel free to contact me anytime at the information below.

All the best,

Tyler MacGuire  e-PRO®, SFR

Broker Associate

Omni Real Estate Company

Office: 970-468-2740

Mobile: 970-409-7779    

Web: www.tylermacguire.com

       

“Your Guide to Summit County Real Estate”