Skip to main content

The benefits to buying in a high-foreclosure area? Team Thayer #realestate #realestatenews #foreclosure #housingmarket #news #housing #realestate

Affordability
Banks generally don’t want to hold on to REOs for too long — each month that goes by means another month of taxes, maintenance, and other costs they have to cover. Because they’re eager to unload the property, they may offer a significant discount (which means smaller mortgage payments for you!).
Likewise, if a neighborhood is filled with discounted houses, then surrounding properties will also sell at a lower price — even if that specific property isn’t a foreclosure.
Options
You can find foreclosure properties at a variety of price points, from tiny bungalows to sprawling luxury homes, so whatever your current budget, there’s a good chance you can snag a deal on a foreclosure.
Value appreciation
If you buy a foreclosure that’s a little rough around the edges, you can make repairs and upgrades that will add to its value. When it comes time to sell, you could price the home for considerably more than you paid for it.
And there are benefits even if you buy a home that wasn’t a foreclosure but located in a high-foreclosure area. Once other buyers snap up the remaining foreclosure inventory in your area, you may still experience significant price appreciation.
Give back
Foreclosures bring down the overall value of the whole community. When you buy one of these homes and put in the work to improve it, you’re adding stability to the community and participating in neighborhood recovery. If others are also dedicated to improvement, you could find yourself in a close-knit, active community that’s on the upswing.

What are the drawbacks?

Steep competition
Since they’re priced so low, foreclosures can get snapped up quickly. Be prepared to act fast and possibly face a bidding war.
Costly repairs
Many foreclosures are sold as-is, and repair costs could seriously negate any savings you’d receive. The previous owner may not have been able to afford basic maintenance and upkeep, or might have intentionally trashed the home upon move-out. If the home has been empty for a while, it could have suffered a burst pipe, mold growth, or pest infestation. Empty homes are also prime targets for looting and vandalism.
Neighborhood instability
Communities with a large amount of foreclosed properties often suffer other issues like higher crime rates, which may make the home not the right investment for you.
Hidden costs
If there’s a lien on a foreclosed property, you could find yourself paying off the previous owners’ debts. If the previous owners haven’t left, you also could have to pay for eviction proceedings.
Time and frustration
Buying an REO can be a time-consuming and frustrating process, with lots of paperwork to fill out and red tape to cut through.
Slow to appreciate
While you may make capital improvements to the home, that doesn’t necessarily mean its value will appreciate. Foreclosures can weigh down overall market values in a neighborhood, so buying in a high-foreclosure area means your home could take longer to appreciate (even if your house isn’t a foreclosed property).

justin lee thayer
Justin Lee Thayer 541 543 7287

Popular posts from this blog

The top 5 mistakes people make selling their homes. Team Thayer Official Oregon Real Estate News.

5 home selling mistakes with Team Thayer 1. Trying to sell your home yourself In this DIY era, the urge to try to sell your home yourself to save money can beckon like the smell of oven-fresh cookies at an open house. Resist.  Working with a licensed agent  helps ensure you’re not leaving money on the table as a result of an off-target listing price or a mistake in the many steps that lead to a final sale. Sell your sofa yourself online. List your home with a professional. 2. Picking the wrong Realtor Not all agents are equal. Just because your college buddy dabbles in the industry doesn't mean he’s the best guy to sell your home. You want experience. You want to  work with an agent  who has a depth of knowledge. Invite your buddy to the house-warming party.  Find an agent  who can truly perform. Do you research.  Top Home Sales Mistakes 3. Pricing your home too high Sometimes it’s good to aim high. But when you’re setting a price for your home, it’s better to b

UFC 227 play-by-play and live results #UFC #MMA #UFC227

LOS ANGELES – MMAjunkie is on scene and reporting live from today’s UFC 227 event, and you can join us for live play-by-play and official results beginning at 6:30 p.m. ET (3:30 p.m. PT). The event takes place at Staples Center in Los Angeles. The main card airs on pay-per-view following preliminary-card bouts on FX and UFC Fight Pass. In the main event, bantamweight champion T.J. Dillashaw (15-3 MMA, 11-3 UFC) rematches former champ and ex-teammate Cody Garbrandt (11-1 MMA, 6-1 UFC) for the title. In the co-feature, flyweight champion Demetrious Johnson (27-2-1 MMA, 15-1-1 UFC) has a rematch with Olympic gold medalist and former title challenger Henry Cejudo (12-2 MMA, 6-2 UFC). Follow along with our round-by-round updates and official results beginning at approximately 6:30 p.m. ET for the UFC Fight Pass prelims, 8 p.m. ET for the prelims on FX, and 10 p.m. ET for the main card on pay-per-view. To discuss the show, be sure to check out our  UFC 227 discussion thread . You can als