My New Blog

Right now it is a buyers market.  One of the places that buyers should really be looking at are those foreclosure bargains out there.  I do appraisals on these and you can often get them at bargain prices because companies want to get rid of them.  But remember that you will not be buying "a finished product".  Most foreclosures will require significant work.  You just won't be able to buy and move in.  But if you have some skills, don't have a large amount of money, and want to put some sweat equity into a place this is really the way to go.  You many not be able to get a traditional loan right of way.  It may mean getting a short term construction loan that you can later roll over into a fixed rate.  But rates are still historically low.  So best not to wait until the market starts heating up to buy. 

But be careful!  ALWAYS get as building inspector to give you the scoop on a house.  You may not be able to see a major problem.  An example is that I did an appraisal on a property that had a septic system.  It wasn't that old of a house and I can't tell what the septic system is like from just a visual inspection in the winter.  But I heard that the septic system was froze up, and the buyers were able to buy the house and get the new system from the lender.  That's at least a $5,000 savings.  So get inspections!