Southern NH Real Estate Answers

Foreclosure Sales

I work with several appraisers that I have conferred with regarding foreclosures in NH. They tell me that banks are allowing properties to be sold sometimes as much as 30% below retail. The competition is fierce.

The banks have finally gotten realistic about their price point and are more willing today to work with a reasonable purchaser. This is different than that of a year ago at this same time. From an investment stand point it's a great time to purchase a property, bank owned or otherwise. The market, on average, faced a 12% equity decrease from December 06 to December 07.  Interest rates are GREAT, and the inventory is plentiful. 

 

Forclosures - Are they safe?

Ah, the foreclosure market, is it safe?

      The word safe means "free from danger, unharmed, trustworthy" according to Webster's Dictionary. These descriptive words do not come to MY mind when I think of foreclosure properties.

      The buyer must be aware of what they are getting themselves into. In all cases of foreclosure, the bank that now owns them has not lived in the property. Therefore, the condition of the property and the deed cannot be warranted.

      Typically a first time home buyer is short on cash and resources needed to remedy any unforeseen major defects with the property. For this reason the buyer does involve themselves in a high risk pool from day one.

      Most people think of foreclosures as a "steal of a deal" in real estate. It can be! If someone with experience is helping with the transaction. It all goes back to knowing your market, knowing your competition, and knowing your self. A skilled professional can help you to digest the danger - and help you determine if it is an "unharmed", "trustworthy" situation to get involved in.

 

Thanks for reading and I invite your comments.

Suzanne Damon