Dearborn Foreclosures - Bank Foreclosed Homes - Advantages & Disadvantages
How to Buy HUD & Bank Owned Homes in Dearborn Michigan (REO Homes)
How to Buy Bank Foreclosures (REO & HUD) Homes
Every buyer looking for a home in today's market will need to decide if buying a bank foreclosed home, HUD house or REO property
is for them. Buying a bank owned forecosured home or HUD house has advantages and
disadvantages. For many
home buyers, the disadvantages of buying foreclosures (foreclosed homes / HUD homes / REO properties) greatly outweigh any advantages so they
ultimately end up purchasing a home offered as a traditional sale.
Keep in mind that bank owned homes, foreclosures and HUD homes are not the only good deals out there.
In fact, when all is said and done, sometimes the bank owned homes will cost you more than a buying
a home that is offered as a traditional sale and is in move-in condition.
Bank Owned Homes / REO / Foreclosures / Foreclosed Homes / HUD Houses Explained are homes that someone purchased, defaulted on the mortgage meaning they didn't make
their payments and now a bank owns the property.
Advantage: Price may be less than other homes in the area
Disadvantages: Might become a "money pit" due to the following...
The Asking Price is Really Low?
- No utilities on: Foreclosed homes usually do not have gas, electric, and/or water services on - sometimes this has lead to dangerous mold growth. You may be required to turn the utilities on and put them in your name before you close on a bank owned / foreclosed home.
- Stripped out: You'll often find that these homes do not have a furnace, central air unit, plumbing, fixtures, ductwork, kitchen cabinets, electric service, toilets, hot water heater, siding, etc. have often been stripped from the house
- Poor condition: Many foreclosures are extremely dirty, have holes in walls / trash strewn about, broken/missing windows and doors
- Water damage due to leaks, water left running, sump pumps not operational
- Other damage: Structural issues and/or other damage to property due to neglect and exposure to elements
The bank foreclosures or HUD homes that are priced really low are either in such poor condition that thousands of dollars
out of your pocket will be required just to make them livable or the price is set low to create a bidding war. In the
case of a bidding war don't expect that simply offering close to or even full price will get you that home. People
will offer over asking price, sometimes thousands of dollars over asking price if the home is worth much more. So, be
prepared to pay more than asking price in this case...or don't bother making an offer at all because you won't be the lucky purchaser.
The old adage of you get what you pay for is most often true with bank owned homes / foreclosures. Those that need a great deal of work
are priced low but at what cost to you in the end? If you purchase the property for $30,000 below market value but have to put that much
into the property what have you gained? Nothing!
All bank owned properties / foreclosures are sold "AS IS" so if they are in a community that requires a city
inspection, YOU will have to do repairs required by the city BEFORE you can move in. Unless you have substantial
cash reserves and deep pockets this could end up causing a financial crisis for you.
Whatever route you feel is best for you, it is VERY IMPORTANT to be represented by an experienced, knowledgeable real estate professional
like Steve Hatfield. Many agents simply aren't as qualified as Steve and if you happen to end up with a real estate
agent that really does not know his/her business very well...it can cost you in more ways than you could ever imagine!
If you are not yet represented by a real estate agent, Steve would be happy to sit down with you and go over all
your options so you can make informed decisions...
contact Steve now.
You'll find tons of valuable tips and advice in Steve's "Home Buyer Survival Kit"
Get your FREE Home Buyer Survival Kit now!
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Buying a home is a BIG investment...don't pick the wrong real estate agent!|
Steve Hatfield is a highly "Qualified" Buyer's Agent!
Honesty, sincerity, professionalism.
As a buyer, you will benefit greatly from his 20+ years experience and extensive knowledge!
That is why you need to Contact Steve if you are thinking about buying a home!
In the world of real estate, there is no substitute for experience. As an experienced real estate agent, I will guide you through the complexities of buying or selling a home, help you to achieve your goals and strive to make the final outcome exciting rather than stressful!
Whether you are buying a home or selling your existing home, please allow me the opportunity to assist you with your real estate transaction. I am prepared to exceed your highest expectations through exceptional service, reliable communication and knowledge of the local real estate market.
Realtor®, ABR, CRS, SFR, e-PRO
REALTOR® ABR, CRS, e-PRO Certified
CENTURY 21 Curran & Christie
25636 Ford Road
Dearborn Heights, MI 48127
Office: (313) 274-7200
Contact Steve Now
Michigan Real Estate Salesperson #6501221773
Licensed Realtor® Since 1987
Steve Hatfield, Realtor® provides real estate / home buying and selling services in Dearborn Michigan, Dearborn Heights Michigan, the Wayne County MI (Southeast Michigan) communities of Redford, Westland, Garden City, Livonia, Canton, Plymouth, Northville, Allen Park, Taylor, Southgate, Wyandotte and the Oakland County cities of Farmington / Farmington Hills and Novi Michigan.
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