Foreclosures & Pre-foreclosures - Advantages and Disadvantages
I'm know you're in tune to the worries of recession and the real estate crisis going on in the US. This has caused a flooding of foreclosures that is surpassing previous highs. Although you still see older foreclosed homes in run down areas, what's different during this crisis is the quality of forclosed homes and neighborhoods they reside have drastically improved. Even some of the nice estates in wealthy neighborhoods can be found at government auctions for prices much lower than market value.
There are some great values out there but in order to take advantage of them you should first be aware of both the advantages and disadvantages of buying a foreclosed home at a government auction versus the conventional method using a realtor.
The advantages of buying a foreclosed or pre-foreclosed property are:
- The great prices available on foreclosed/pre-foreclosed homes is obviously the number one advantage.
- Many homes are in good condition for much less than their market value.
- Variety and selection is better then it has ever been.
- No realtors or agencies fees to pay (consulting with a real estate savvy person is recommended).
- Some insurances are optional. It could save you hundreds a month.
- Great investment opportunity (i.e. rent out or flip that house)
- Not as risky as stock investing, plus you will own something of physical worth.
Disadvantages:
- Borrowing money may be more difficult, unless you have strong credit.
- Need to be mindful of existing liens or taxes that have not been paid on the property.
The main caution is to properly check that the property is free and clear of any debt ahead of time. Also know in advance when the government auction expects payment for the house and have the loan details worked out with your bank. As with purchasing any house if you have enough cash handy (who does) that makes your profit potential much greater.
Government auctions are being held regularly across North America. Check the Internet to discover information on the upcoming auctions and the property listings at each auction. Many sites will display images of properties that are in pre-foreclosure (properties you can purchase before the auction) and that will be each particular auction. Buying a foreclosed home through a government auction can be a very rewarding experience, but make sure you do your research first. You may wish to just watch during your first visit to a government auction to gain experience and get an idea of the procedure used. - 23199
There are some great values out there but in order to take advantage of them you should first be aware of both the advantages and disadvantages of buying a foreclosed home at a government auction versus the conventional method using a realtor.
The advantages of buying a foreclosed or pre-foreclosed property are:
- The great prices available on foreclosed/pre-foreclosed homes is obviously the number one advantage.
- Many homes are in good condition for much less than their market value.
- Variety and selection is better then it has ever been.
- No realtors or agencies fees to pay (consulting with a real estate savvy person is recommended).
- Some insurances are optional. It could save you hundreds a month.
- Great investment opportunity (i.e. rent out or flip that house)
- Not as risky as stock investing, plus you will own something of physical worth.
Disadvantages:
- Borrowing money may be more difficult, unless you have strong credit.
- Need to be mindful of existing liens or taxes that have not been paid on the property.
The main caution is to properly check that the property is free and clear of any debt ahead of time. Also know in advance when the government auction expects payment for the house and have the loan details worked out with your bank. As with purchasing any house if you have enough cash handy (who does) that makes your profit potential much greater.
Government auctions are being held regularly across North America. Check the Internet to discover information on the upcoming auctions and the property listings at each auction. Many sites will display images of properties that are in pre-foreclosure (properties you can purchase before the auction) and that will be each particular auction. Buying a foreclosed home through a government auction can be a very rewarding experience, but make sure you do your research first. You may wish to just watch during your first visit to a government auction to gain experience and get an idea of the procedure used. - 23199
About the Author:
To locate an updated list of foreclosures/pre-foreclosures on the top government auction sites click government auctions review or Bank Foreclosures & Pre-foreclosures
posted by X - Men @ 5:21 AM
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