Feb 02 2009
Foreclosure – Is Now the Right Time to Buy?
With the foreclosure rate being so high these past 6 months, many homeowners may be wondering if it’s the right time to buy? A quick look at many of the real estate forums on the Internet will show the great debate has been raging for many months now. On one side, you have the team that thinks you should wait because there are more foreclosures in the horizon. On the other side, you have the team that thinks you should buy any deal you can find right now. If you listen to Warren Buffet, “Now is the time to Buy.”
Deciding when the right time to buy a house is always a big decision. Deciding to buy a foreclosure is an even bigger decision. Buying a foreclosed home is not the same as buying a regular house that is being listed by a homeowner. A foreclosure on a house usually means the previous homeowners owed too much on the home and could not pay it back. Therefore the bank had to take possession of the house. They could have taken possession amicably or forcibly. The condition of the house will tell just how well the transfer went from the previous homeowners to the bank.
Many foreclosures are in need of some sort of repair. There are very few foreclosed homes that are in turn key move in condition. Many foreclosures will need updating, because the previous homeowners took out money during the peak of the housing market with the hopes of remodeling or updating the house. You will find many that have also been vandalized either by previous owners or because the house was empty for many months. Almost all the foreclosures have a good story to tell. It is just a matter of finding the right person who will tell you the story on the house.
For the homeowner who is looking to buy right now, a foreclosure might just be your diamond in the rough. A foreclosure might be a way for you to get into the neighborhood you might not have been able to afford 2 or 3 years ago. If you are willing to put in the sweat equity, you might be able to find your self a very reasonably priced home. Like with any home buying decision, the right time to buy is a very personal decision that only the homebuyer can answer. Is it the right time to buy a foreclosure? That is really up to you. For more information check out the rest of our website.
