Today in nearly every city in the United States there are great opportunities for intelligent real estate investors. The current economic climate has produced a boon of empty, under-priced and foreclosure listings in every price range and all conditions. But it is definitely unlikely that prices will remain this low forever and now is proving to be a awesome time to invest in foreclosure listings.
Current real estate markets across the country tend to be going in a downward trend. This is not completely negative news. The savvy investor who takes advantage of the down market and invests in foreclosure listings will be the one who will also be taking advantage of the profits when things shift. Real estate cycles come back and home prices will not stay down forever. Now is the best opportunity to invest in foreclosure listings.
If you are interested in investing in foreclosure listings there are a few ways that you can take the opportunity of this time. One way is to search out “short sales”. A short sale is when a homeowner is basically “upside down” in their mortgage. They can still sell the home but only at a loss to the lender as the home will only sell for less than what they owe on the property. This offers a great opportunity for investors because these homes are often priced very well. To find these foreclosure listings contact your local realtor or look on your local MLS.
Another way to get a great deal on a foreclosure listing is to purchase at a foreclosure auction. A foreclosure auction takes place at the nearest county courthouse. The property is auctioned off to the highest bidder and the selling prices are usually quite reasonable. Many times the competition is low and the only other bidder may be the bank that holds the note. The one concern is that these homes are sold “as is” and if there are any required repairs the investor will be responsible.
If the bank has to take the home back into foreclosure they will want to get the property off of their books as soon as possible. Therefore they are often very motivated and will lower the price on these foreclosure listings until they are gone. Many times they will use a realtor so check your local MLS. Occasionally they will do some repairs but sometimes they will sell the property “as is”. Do your due diligence inspections before you invest.
When someone invests in the stock market and the stock crashes they have the potential to lose every single dime that they invested. That is a definite advantage to investing in real estate and foreclosure listings. While we may not be able to predict when or how much the price will increase you always know that the home is worth something and you can sell it or rent it. In distressing economic times this makes investing in real estate and real estate foreclosures a great opportunity compared to many other investments.
As a smart investor it is your responsibility to make sure that all of the appropriate inspections are completed and that your funds are ready to close. If you use cash or bank financing to buy a foreclosure listing the bank will almost always require certified funds or make you give up your earnest money. Also most banks will not pay for repair costs so if the repairs are objectionable to you back out of the transaction.
But now is an excellent time and opportunity to buy real estate and foreclosure listings in almost any market in the United States as the prices are low and the potential for profit is very good.