Over the last few years, foreclosures seem to be one of the most asked about topics we get here at East Texas Life Properties. We are one of the few foreclosure listing agencies in East Texas and therefore have a thorough grasp of the foreclosure process.
People often tell us they want to start investing in local foreclosures. But before you get ahead of yourself, there are a few things to consider:
1. Just because it's a foreclosure doesn't make it a "deal."
If you're looking to buy something for less than market value, a foreclosure is not always the answer. Great deals can be found in all types of sales: Foreclosures, short sales, estates, and traditional sales. Which leads us to #2...
2. Foreclosures don't necessarily list at low prices.
Like traditional sellers, foreclosure companies want to know the market value of the property they are about to sell. They have multiple opinions from licensed professionals who help determine the market value of the property. Then they evaluate each property on a case by case basis to determine asking price. So while you can certainly find foreclosed homes below market value, you may have to hunt a little more than the reality TV shows will lead you to believe.
If you're curious if the foreclosed listing really is a good deal or not, ask your agent to do a market analysis on the property before you buy it. Also, consider the rehab costs that may be associated with the property. Many foreclosures have been sitting vacant throughout the foreclosure process, resulting in some need for repairs. Finally, like any other home, determine if it is a good fit for you to purchase.
This brief post is just the tip of the foreclosure iceberg. Stay tuned for another article soon with more information on East Texas foreclosures!
- Jayna Williams, Managing Broker