As the quality of foreclosed homes has gotten better, they’ve become a popular option for Southern Maryland home buyers. In the recent past, foreclosures were left abandoned and in disrepair. These days, banks usually renovate these home before selling.
Whether you’re thinking about foreclosures or not, the odds are that you’ll come across a foreclosed home and will consider it a viable option. Let’s take a closer look at the different elements of a foreclosed home that you’ll need to consider before making your purchase.
Advantages of Purchasing a Foreclosed Home
They are cheaper: Foreclosed Southern Maryland homes are about 5 percent cheaper compared to equivalent homes that are not in foreclosure, even if they’re in the same location. At one time, they were 15 to 20 percent below the market rate, but the current rates are still a better deal. The value of the home may appreciate over time, and if you decide to sell, you’re very likely to make a profit.
Disadvantages of Purchasing a Foreclosed Home
They can still be expensive: The price of Southern Maryland foreclosed homes have increased compared to just five years ago, even though they are still lower than market rates. Many banks invest in renovating these houses in hopes of selling them at a good price. This is one of the reasons why prices have gone up on foreclosed homes. Although you may buy the home at a slightly cheaper piece, know that you may find it to be more expensive in the long run because of the risks involved.
They may not be in the best shape: In most cases, foreclosed homes are not in good shape, often requiring significant repairs. Damages like roof leaks, mold, plumbing problems, and other damage may not be disclosed.
Remember that a foreclosed home was once owned by someone who was unable to make their monthly mortgage payments. This may mean that they were also unable to afford to do regular maintenance on the home. Most of the time, when homes reach the point of being owned by the bank, they are in their worst state. You may get to do an inspection during the closing process, but remember that foreclosed homes are sold as is. This means that you can’t request any repairs be done before closing as a contingency of the sale. You’re buying the home at your own risk.
They may be in undesirable locations: Many homes in foreclosure today are in unattractive areas. Sometimes, the price of that home looks great not just because it is in foreclosure but also because of where it is. You could end up getting stuck living in a home in a bad neighborhood because such houses can take time to sell.
Tough competition: A lot of Southern Maryland home buyers are attracted to foreclosures because of their prices. Competition for these houses can be tough – especially when the house is in a prime location. Make sure you’re familiar with foreclosed houses and trends in the market so that you don’t end up paying more for an undesirable house.
A slow process with no guarantees: Buying a foreclosed home is a long, frustrating process. There’s a lot of paperwork, and the process can be incredibly slow. You may end up waiting weeks for a reply. Because these homes are owned by the bank, they will do their best to get a good price so they can recover as much of their loss as possible. Your contract could end up getting cancelled if a better deal comes along – even if you were almost ready to close on the deal.
Buying a Southern Maryland home is one of the biggest investments you’ll even make. Foreclosed homes are attractive because of their below-market prices, but they can end up being more expensive in the long run. Doing a lot of research before you make a final decision can help you make the best choice. Look at market trends and consult a Southern Maryland real estate agent for advice. The terrain can be tricky, but you just might find a diamond in the rough.
La Plata MD Homes for Sale and Real Estate Services in Southern Maryland. You now have a search engine to help you with your Southern Maryland home search! And I’m ready to provide you with a custom home valuation if you’re considering selling your home. Let’s connect to discuss how I can help you. Contact Kimberly Bean at 301-440-1309
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