The New Foreclosure
The foreclosure stats are amazing by without doubt. Bank owned homes have overrun many markets and are usually damaging to neighborhood values. Foreclosure properties are commonly the worst kept properties in the neighborhood with vandalism and property burglary frequent. Shortage of house owner engagement regularly causes the property to deteriorate at a quicker than normal pace.
These factors have made a negative image for foreclosures in several regards. Imagine being a property owner next to a poorly maintained foreclosure property. This image makes it simple to comprehend the negative connotation connected with foreclosures in many neighborhoods. The market has made a universal mental image when it comes to foreclosure properties.
Here’s the problem: negative image drives down home values. Several of the largest corporate sellers have realized this fact and are rebranding to a kinder, more interesting repo property. Sellers such as Fannie Mae, Freddie Mac and HUD are striving to meet certain property standards and are engaging a fresh look at their home inventories to buyers. Fannie Mae and Freddie Mac often now make improvements to the property—new carpet, appliances, paint and other repairs—to bring the property up to localstandards. These properties are not always your conventional repo!
Enter the updated marketing for these homes: the biggest being HomePath, HomeSteps and HUD’s HomeStore. The internet sites for these homes have a fresh new look. Your basic list of foreclosures provided by a local MLS is gone and replaced with an intuitive websites with lots of pictures, property details and contact info. There’s even information related to financing and closing cost promotions connected with some properties.
Purchasers in the marketplace for a new home should review their perspective on foreclosure properties. These homes have come a long way and often compete now directly with fair market sales in terms of condition, appeal and quality. A house buyer should keep all homes under consideration , even HUD homes for sale in the area. A buyer might be surprised at these foreclosure possibilities.
Purchasing a foreclosure could be a sound investment so long as a buyer is familiar with the process and opportunities. Tom Webb is a real estate investor and real estate agent. Tom provides details about purchasing and marketing REO and bank owned homes at the REOOpportunity.com website.
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