Foreclosed Homes in Boston
Foreclosed homes in Boston
and Surrounding Areas
“Foreclosed homes in Boston are a great deal!...right?”
Well, in many situations buying foreclosed homes in Boston and foreclosed property can be an excellent choice – but there are a number of variables involved. Read on for some tips and advice on how to buy a foreclosed home in Massachusetts.
Benefits to Investing in a Foreclosed Homes in Boston
While the process is undoubtedly complex, there are benefits to purchasing a foreclosed property. One of the main motivations driving foreclosure buyers is price: it’s a fact that most foreclosed homes in Boston will sell at auction at prices much lower than market value. A key thing to remember is that competition against professional investors is almost guaranteed.
Another advantage to buying a foreclosed property at auction is that payment is more streamlined than on a standard transaction. It is common for payment to be made via cashier's check, and payment is made on the same day as the auction. It stands to reason that competition will be against others who can come up with large amounts of cash at once.
For many people who plan to occupy a foreclosed home in the Boston area – rather than buying it for resale only – one benefit is the ability to move in quickly. Because the home has already been foreclosed upon, the wait time is non-existent. A family could theoretically move in the same day the house purchase is final.
Of course, purchasing a foreclosed home is not all smooth sailing. Foreclosed homes are often in suboptimal condition (or worse), so buying one usually requires making repairs – sometimes very costly ones – to prepare the home for sale at market value. If a buyer is also a contractor or can perform many of the necessary repairs, he may be able to increase the profit margin on a foreclosed home.
It's also important to understand just whom it is that legally owns the foreclosed property. In some cases banks have acted too quickly in the selling of a home they have foreclosed on without proper paperwork and ownership. Doing so put the new buyer in a real bind and can negate the sale.
Steps to Buying a Foreclosed Home
There are several strict steps that must be taken to ensure the whole process is done correctly, beginning with financing. Because foreclosed homes go quickly, it’s imperative that a buyer’s finances are in order so that a winning bid can be entered when an opportunity arises. Competition is certain to occur, so prospective buyers should have all their ducks in a row. Unless you plan to buy the home with cash, make sure you get a preapproval letter from a lender right after finding your agent as the bank may not approve a mortgage on the same house they foreclosed on.
Remember that there is no general rule of thumb for how a bank prices foreclosed properties. Every house is different and banks have to observe all comps before putting the home up for sale. This affects your price offer; for example if the house is priced high, you will not be able to bid half price, while if the house is priced low, you will have to consider that many others are probably also looking at it.
One of the bigger things to keep in mind is that foreclosed homes are sold AS IS. This means you pay for any repairs yourself, and shouldn't expect a discount from the bank to accommodate damages. Because repairs are often unavoidable, it might be useful to get to know some tradespeople who can repair the house’s general damages (air conditioning, heating, mold, insects, etc...).
Finding an agent like Mike DelRose with experience in Boston foreclosures is another critical step. Mike knows how to navigate this complex process and can save buyers both time and untold headaches.
With your finances in order, make sure you know how long it usually takes to sell a home in your price bracket. It pays to study the prices of comparable homes in the same area, and this is where Mike DelRose can also help. He has the experience to understand how to accurately determine an advantageous selling price. To say the least, experience really counts in this area.
For a first time buyer, this list can look daunting. It may be that buying a foreclosed home in Boston could be a great investment for you and your family – as long as you bear in mind that, along with potentially buying at an attractive price, the process is complex. The Mike DelRose Real Estate Team, with their deep understanding of foreclosure transactions, can help you get the deal done with as little stress as possible.