surprise that buyers are looking for a bargain - but now, even more people are
showing interest in the growing foreclosure market. According to a recent
survey in the USA, it shows
that 55 percent of U.S.
adults are at least somewhat likely to consider a foreclosed home when buying
real estate. That's nearly a 10 percent increase from November 2008.
we do not have definite statistics for South Africa, trend is probably
similar due also to the global economic downturn.
let me point out that there are three categories of “foreclosed” or re-possession properties.
The original owners still hold title to the property and the sale is taking
place via our Assisted Sale processes or by auction. These properties can often have
high repairs costs as I will explain below.
The bank has already reposed the home and now holds fresh title to it. They
have just taken over title and so the repair factor is still high.
The bank has had title to the property for a period of time. In most of these
cases, they would of undertaken necessary minor repairs in order to make the
property more saleable.
OF REPOSSESSIONS Many
buyers are a bit wary of foreclosures. Much of this comes from the fact that a
repossessed property only exposes our own vulnerability and many people
therefore prefer to just stay away. Among the top concerns are hidden costs, a
risky process, and further de-valuing of the foreclosed property.
Buying a foreclosure doesn't have to be a scary and unknown process if you take
the right precautions. Additionally, if you approach a seller for instance that
is forced to sell, with a reasonable offer, you can get a bargain as well as
save them the full repossession route. A win-win situation. PROPERY NETWORK deals within the various bank's assistance schemes,
and we will be able to give you
a list of these as well as guide you as to the best buys.
AND INSPECT AGAIN Inspect
before you buy is a good motto for any real estate transaction, but even more
so with a home that has been repossessed and possibly sitting vacant for long
periods of time.
The trouble with foreclosures is what happens to the homes during the
foreclosure process. People who are getting into the point where they're going
toward repossession usually don't have money for maintenance. Consequently,
sometimes important housing needs are let go - or potentially worse, the former
homeowners unsuccessfully attempt to do their own repairs.
You see weird plumbing or wiring setups that can sometimes really cause a
problem in the future, like with the electrical system causing fires or the
plumbing causing leaks.
there us also the element of just don’t care. These owners are losing their
homes and lose total interest in the upkeep and maintenance. In some instances,
their disillusionment and negativity also results on deliberate damage, albeit
big concern is when the previous homeowners used various items in the home as
replacement for something that had broken. Because homeowners who are facing repossession
frequently cannot afford to fix something in the home, they go without it. But
that can cause more problems.
The best thing you can do if you're considering a distressed sale home is to have it
inspected. Just make sure that the property is ready to be inspected or you
could be doing yourself a huge disservice. Have everything turned on, such as electricity,
gas and water, because that's when you might start seeing things that are wrong
like leaks and electrical problems. You could see problems with the heater or
the water heater, ovens or cook tops that use natural gas.
further detail on inspecting properties, go here If
you think you would like to purchase a repossessed or distressed sale property,
give me a call and I will let you know what is available in the areas you are