Pinetop White Mountain Blog

Good Evening Everyone,

I wanted to focus on a different angle in tonight's post.  There has been so much publicity about what great deals foreclosure properties are, that most buyers in the market today think that is what they simply must have when they are buying a home.  Even if they have to settle for something that isn't exactly what they want.

While I won't deny that the prices on them are very competitive, don't sell yourself short by focusing your property search on foreclosure properties to the exclusion of all other properties.  There are many very motivated regular sellers out there who need to sell their homes too.  They may not have the lowest list price but that does not mean that they would not look at an offer if it is a fair price for the property.

Foreclosures come with baggage.  They are sold AS IS and that means that any repairs necessary are going to fall on your shoulders once you close on that house.  Keep in mind that by buying a foreclosure you are buying someone else's problem.  For whatever reason they walked away from the house and it could be because there were defects that they could not deal with.  Those homes have been vacant for a long time and more issues could have developed over time.  The longer a house sits vacant the sadder the condition of the property becomes.    

A regular seller might be more flexible about taking care of some of those items for you so you don't have to worry about them after closing.  If they can't do them, they might be willing to negotiate the price to compensate you for doing those repairs after closing.  All things considered you may end up with a better house, in better shape, with some money in your pocket to do repairs or perhaps upgrades you would like to do.  Yes, your purchase price may be slightly higher but you will be getting more house for your money. 

In today's market you need to remember that almost every home on the market comes with some built in equity.  Just ask your agent what that house sold for originally and you will see that even by paying just a little bit more for a home, when the market recovers and it will, you will be going in to the home in a future equity position.  Unless you plan to buy and sell within a couple of years, you are going to be in a good position on that property. 

It is time for us all, the media, the Real Estate Professionals, and the buyers and sellers to start focusing on the future not the past.  Yes, we have been through some difficult times but things will get better, they always do.  Buying a home or land is always a good investment.  In the words of Gerald O'Hara in Gone with the Wind, "Land is the only thing that lasts".

Some food for thought.  Have a great evening everyone, until next time.

SANDRA PAULOW, ASSOCIATE BROKER, GRI

Your High Country REALTOR®  (928) 242-0300