Star Realty, L.L.C.

Real Estate Professionals

Thinking about buying a fixer-upper or a foreclosed property?

It's no secret that there are a ton of foreclosed, reo's (real estate owned), and fixer-uppers available these days.  Most savvy homebuyers know that buying foreclosures can be a great way to purchase a home at fraction of the price.  A foreclosed home can be a profitable investment opportunity - but it can also become a money pit - so you should know what you're doing:

Here are some pro's and con's with foreclosures and fixer-uppers:

 Pros:

1.  Low prices. Foreclosures sometimes sell for 20 to 50% below their true market values; however, discounts of 5 to 10% are more common.  Foreclosures are almost always priced lower than homes in the traditional real estate market.

2.  Fixer-upper homes or "flips".  "Fixer upper homes" are properties that need repairs, renovation, and a little tender loving care. By investing a little sweat equity, most homebuyers find that they can make significant profit by reselling or flipping the home after some relatively quick and minor repairs.

3.  Lower closing costs. The banks and government agencies that sell foreclosed homes are in a hurry, which means that they are often willing to accept lower offers on down payments, financing options, closing costs, and all the other miscellaneous costs associated with buying a home. Many sellers will come right out and offer buyers great deals and contract terms simply to sell the house quickly.

4.  Move-in date. Most foreclosures are vacant, meaning that you can move in almost immediately after purchasing the home.  No waiting for the previous owners to move out.

5.  Flexible financing. When banks sell their REOs, they're often willing to offer very flexible financing terms to sweeten the deal to get the property sold more quickly.

6.  Investment opportunity. Since foreclosures are so inexpensive, they're great options for flipping, equity-building, renting, and other investment purposes. You can easily make a tidy profit, and quite possibly make your personal fortune by wisely investing in foreclosed properties.

Cons:

1. Liens and liabilities. Foreclosed properties may have liens from unpaid taxes or liabilities regarding the property title. These hassles can increase the paperwork burden and make the process of buying a foreclosed home more expensive. With a little research, you can avoid these time wasters.

2.  Former homeowners.  Former owners of foreclosed homes are sometimes in denial and refuse to move out of the property. If you're the buyer, evicting them will be your responsibility. Again, a little research in advance and working with a professional real estate agent can solve this problem.

3.  Property condition. Some foreclosed properties are located in nice neighborhoods and are in good condition - but there are also some rundown properties which are in need of rehab.  Some fixer-uppers require alot of repairs and renovations .  Just be sure to give the home a thorough investment before purchasing so there'll be no surprises.  

4.  Sold "As-Is".  When buying a foreclosed home, always do your research and exercise caution as these properties are sold "as-is", without any guarantees. But with the potential profit-making opportunities, the extra paperwork seems a small price to pay.

INTERESTED IN BUYING A FORECLOSED PROPERTY?  CONTACT US TODAY FOR A LIST OF FORECLOSED PROPERTIES OR FOR MORE INFORMATION.  Star Realty agents are experienced in assisting our clients buy and sell foreclosed properties.  We can also offer assistance in obtaining financing for foreclosed properties - which is different from obtaining a traditional mortgage.   <"CMA,free CMA ct,free CMA waterbury,property management waterbury,property management ct,waterbury properties,waterbury homes for sale,waterbury rentals,waterbury realtors,waterbury real estate,HUD homes waterbury,waterbury ct,schools waterbury ct,shopping waterbury ct,credit repair ct,credit repair online,wolcott ct,naugatuck ct,brass mill mall">