Branson Foreclosures – Always a Bargain?

Foreclosures, REOs, and Short Sales, oh my! These distressed properties are all the rage, of course. Everyone wants a bargain, and in this market, there are plenty of bargains to be had. Purchasing a distressed property might not always give you the best deal however. Just because a home is bank-owned doesn’t mean that it’s priced right.

Let me be clear, by and large, foreclosures are great deals, but there are a few factors to consider. First of all, has the property been priced right? I’ve seen plenty of foreclosed homes in Branson that are priced well above market value. In fact, there are many foreclosures that have been on the market for months because they’ve come in overpriced.

Second, you have to consider the condition of the property. Many foreclosures are available at bargain prices, but you have to be sure that you know the cost of repairs and deferred maintenance that will have to be performed in order to bring the property up to par. Remember, if a homeowner lost the home to foreclosure because they couldn’t make the payments, chances are, they didn’t take care of regular maintaining the property. Some homes end up in foreclosure because of more major defects, including water damage, mold, foundation issues etc. Banks sell these homes AS-IS and they claim to know nothing about the condition of the property whatsoever, so it’s crucial to have a thorough home inspection to protect your investment.

Third, are you willing to jump through the bank’s hoops? The entities that own these properties expect you to consider it a privilege to purchase their property! You have to do business by their terms, so there’s a lot less flexibility and communication than a traditional real estate deal. This isn’t a major barrier to most deals, but many buyers are surprised at the stringent terms of these sellers.

Proceed with caution
There are lots of extra documents that come with buying a foreclosed home. Often, the seller requires offers to come with their contract addenda so they set the terms of the agreement – and it’s all to their benefit. I recommend that my clients read every word of these agreements, understand them fully, or ask an attorney to help them understand the terms of the agreement.

Don’t miss out on other great Branson homes for sale
It happens a lot in this market. People are so caught up in the foreclosure-buying feeding frenzy that they miss out on great buys from traditional home sellers. There are many sellers that have the flexibility to offer buyers a terrific bargain without the headaches of going through the foreclosure process. Often, these properties are more attractive anyway – they haven’t been ransacked, haven’t sat vacant for long periods of time, etc. Make sure you have a buyer’s agent who will hunt down the great deals, regardless of who the seller is.

Overall, foreclosures can be a great bargain, and many of my clients have been very happy with the foreclose deals that we’ve found, but I have just as many buyers who love their homes and were able to buy a terrific value without navigating the foreclosure circus.

Speak Your Mind

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God cares about honesty in the workplace; your business is his business. Proverbs 16:11 (MSG)