I had a phone about foreclosures and short sales in another town. They were wondering if these were bargains.
Short sales and foreclosures are often not the deals they appear to be, especially for inexperienced buyers.
In this market, even banks want to get top dollar for their properties because they do need to get the most to cover their loan and you can overpay for a property and still must go through all the trouble of doing the work on it. This is especially true for people using FHA loans, which have strict requirements about the condition of the homes they are used to purchase.
It’s difficult for novices to know what they’re buying even if he price tag may be fair, but the damages are often severe and the room for negotiation is limited.
With foreclosures sold at auction, you’re buying the property as is. You must weigh the risk you’re willing to take, great the price is vs the cost of remodel.