Friday Five: Advantages of buying a foreclosed home

By: Brad Horner

The National Association of Realtors recently reported that sales of distressed properties, including foreclosures and short sales, made up 38% of home sales in January 2010 and 35% in February 2010.  There are many reasons that homebuyers and investors alike continue to flock to foreclosed homes; below are the top five advantages:

1. Price is the obvious first advantage, as foreclosed homes are sold by highly motivated sellers – banks – which often list homes below market value.  In addition to being bargains for owner-occupied residences, foreclosed homes are often sought after for vacation homes or rental properties, as they provide a cost effective entry into real estate investment.
2. Banks may be more likely to finance foreclosed homes that they have listed, as they have an interest in selling these homes in order to eliminate the costs associated with owning them.
3. The foreclosure purchase process isn’t very different than the traditional home buying process.  Experienced Realtors can help buyers find foreclosed homes, analyze the market value of a foreclosed home of interest and prepare the offer.
4. Many foreclosures are brand new construction single-family homes or condo units; therefore they still provide the opportunity to be a home’s first owner.
5. Purchasing a bank-owned property is considered to be a safe deal for inexperienced foreclosure buyers, as much of the buying risk is eliminated since there are no back taxes owed, no liens on the property and no tenants to evict.

Bank-owned properties are easy to find, as many banks have them listed on their Web sites.  Or you can also visit www.CBBankOwned.com to view nearly one thousand bank-owned new construction homes in Georgia and Florida markets and also learn about upcoming open houses.