Should I buy a Foreclosure?

"Foreclosure" has become a buzz word for buyers today.  "we want to look at foreclosures" or "can you send me some information on foreclosures?".  I actually send out a list via email of foreclosures in my area that I compile by mining the data on my MLS;  looking for key phrases like "bank owned" or "addendum must be included with offer".  However, is a foreclosure a smart purchase? It could be, but it may be a bad idea. It depends on your goals and time frame ( how long to you plan on living in the home?)

 I advise buyers to look at the neighborhood and the surrounding area before committing to purchase a foreclosure, regardless of price.  Buying in a neighborhood that is in free fall is like trying to catch a falling sword (timing is everything)  If that foreclosed home is in an area where there are multiple foreclosures, I would look elsewhere.  Sure the price is cheap, but you can also get cheap tickets to board a sinking ship.  

 Buyers would be better off with a smart purchase rather than good deal... look for a reasonably priced home in a rock solid neighborhood.  

Tripp Montgomery

Realtor

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  • September 03 2010 - Camden
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Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.

Answers (6)

Profile picture for sunnyview
Usually, Zillow asks folks to keep the contact block out of post in an effort to maximize information and reduce self promotion on the board. They have the policy posted here
  • September 03 2010
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Foreclosures and Short Sales are great options if they are located in an area or neighborhood that will work for the buyer.  At RE/MAX Island Realty/Hilton Head, the majority of our closings have been foreclosures and short sales in 2010.  The savvy buyer's are looking for a deal - good investment.
  • September 03 2010
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Profile picture for Dunes....
Question or Mini-Blog?
  • September 03 2010
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Hi,

Now is a good time to buy foreclosed properties.  You have the opportunity  to get a great property in a good neighborhood for a good price.  Get your Realtor to take you to at least two foreclosure auctions.  You should keep in mind that you will be bidding against the bank.  If you're successful in getting the property for a bargain, you will need your agent to make sure you have clear title, etc.  Even if you need to make repairs to the property, remember that that this property will appreciate.  That means that it is a hedge against inflation.  Good luck with your purchase.
  • September 03 2010
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Profile picture for Dunes....
Now I understand...it's a Buy and be sure to Use a Realtor Spam thread..
  • September 03 2010
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Dunes - answer:  mini blog...........

Is it just me, or are there a large number of posts on zillow similar in nature to this one.......a questionable "question" is asked, which really isn't seeking an answer....but it is really just the opening for some posturing on the part of the person asking the so called question............the position of the poster is clear......so what is there really to discuss?
One actually asks and answers their own question in the body of the question!

I like straight forward questions in which someone is really looking for  answers, or at least a discussion regarding the topic.

This is a blog, not a question, and it confuses me further as to the workings of zillow.
  • September 04 2010
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