Right now there are ALOT of bank owned properties in Irving and Las Colinas. The question I get asked quite often is "Can you find me a great deal on a foreclosure?".The answer is a bit complicated. If the bank is ready to sell the property and is realistic on true value than sure they are out there.
However many banks acquire a property from an owner that is in really rough condition and let's say that the balance on the loan is $80,000. The market analysis shows that homes of similar size and location are selling for $120,000.Without any repairs the bank puts the property on the market "as is" for $120,000. Let's say that the repairs needed will cost you about $15,000. Buying it for anything more than $105,000 would be overpaying.
People generally assume that by buying a foreclosure you are paying what the bank was owed on the property, thus maybe getting a great deal on a home. But the banks are in it to make money. It is doubtful that they will sell a property for less than what was owed, and when they do sell for what they were owed, it usually comes months after it has been sitting on the market.
In today's market of people who have refinanced to many times that loan balance might actually be HIGHER than what the home is worth. There is alot of research that must go into buying a home especially when it is bank owned.
Monday, February 25, 2008
To Buy Or Not To Buy (a Foreclosure)
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2 comments:
How do you access those properties? That was always a conundrum for us. It seems that some banks do put the properties on the MLS and some don't. How do they sell those properties if they don't put them on the MLS?
Great site!!
Most of the bank owned properties are on the MLS. Some get sold in insider deals to people who get the list from someone they know at the bank.
Have you tried looking at http://firstpreston.com/ This is a great site for foreclosures.
Also alot of these properties will be sold at the county courthouses once a month. You can also pay for this service but I have found that the information is usually quite dated.
Thanks for the comments
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