BANK REPO THOUGHTS
I recently showed a property in foreclosure. There are some issues to consider when thinking of buying a property that's being sold off by the bank.
Bank Repo Thoughts Blog Transcription
Hey there! Rob Reynar here, not a terrific property from a condition
stand point that I'm in today. I'm actually in a foreclosure property.
This is an acreage listing that is just outside of Cochrane. So this
house is in foreclosure and one of the neat things about foreclosure is
that a lot of times the property isn't in the greatest of condition.
It's been hard lived in, abused and now it's empty. A couple of things
about foreclosures, a lot of people under the misconception that you're
gonna get this great bargain off of the list price because it is a
foreclosure. Not necessarily the case, banks these days because of
their low carrying cost are willing to sit on a property until they get
what they feel is the fair market value for it. Now you might be in a
position where the list price of the home is actually under what it
would be if it was you know fully livable and renovated and clean and
acting like a normal home. So their almost already devalued a little
bit. You're not necessarily gonna get that extra jump off of the list
price that you would expect. The banks they need to make back what they
have invested in it and foreclosure have usually racked up a bunch of
costs, lawyer bills, bank bills, etc. So foreclosures aren't always the
deals that you think they're gonna be, they could however be listed
under value when they do go on the market. The other thing to remember
on foreclosures is you've got a lot of work to do and there are
absolutely no warranties and representations on a property. So you have
to really do your due diligence and make sure it's the property for
you. Question, do you seek out foreclosures trying to get a deal on a
home just because it's a foreclosure? Love to hear your comments on
this, Rob@RobReynar.com, R-E-Y-N-A-R, Rob@RobReynar.com, talk to soon.
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