The Realities of Buying a Foreclosure

            Written by David S. Lewis, broker for Infinity RRE, LLC, Plano, TX

Are you a first time home buyer looking to get into a home at a great price or someone looking for some investment properties? As you have started your research on what type of home to buy you may have started looking into foreclosed homes. While the prices on these homes might seem great, knowing the realities of what you may be getting yourself into is important.

What is a Foreclosed Home?

            A home is foreclosed on when the borrower in unable to pay the lender and the lender repossesses the home. The property is then put on auction at a price below market value and sold “as-is” often with out an inspection available prior to the purchase.

Conditions of Foreclosed Homes

In purchasing the home you may get very lucky and the property will be in great shape. However this isn’t usually the case. Quite often the home is going to require repair work from small things like replacing doorknobs to huge like repairing the foundation. These repairs can eat away at the savings you got from the price of the house being low. You will also most likely have to purchase appliances and fixtures as these are often sold. Sometimes the homeowners destroy walls or cut wires out of anger over losing their home. That $150,000 home that was a steal may end up costing you $170,000 or more after the repairs are done.

Tenants

Another problem you may face with your foreclosed home is the potential that people may still be living in the home. They may be tenants or family of the original owners and as the successful purchaser it is typically up to you to evict them. This could require you to spend money on a lawyer or to pay the people to leave and the process can take a while especially if you want it to go well. Tenants that get angry could destroy the property too.

To Buy or Not to Buy

Even with all the risk associated with foreclosed home there are still some good deals out there for those who are patient and willing to do the research. This is not always the best way to go though if you are a first time homebuyer or are looking to move into a property quick. Remember to not get tunnel vision when looking for a home… you may be able to find something for a great price with out having to deal with the headache of a foreclosure.


We at Infinity RRE, LLC are here to help navigate you through the home buying experience. Contact us today by email or call us at 469-429-4949 to get in touch with an agent.


 Infinity Commercial Real Estate Company consists of:

  • Infinity CRE (Commercial Real Estate): Sales, Management and Leasing of commercial real estate
  • Infinity RRE (Residential Real Estate): Sales of single family homes 

Currently Infinity CRE and Infinity RRE consists of 40 brokers engaged in various aspects of real estate services. Infinity CRE achieved sales of $50M in 2006 and $65M in 2007.

David S. Lewis

 

David S. Lewis has been engaged in real estate business since 1999 in Dallas, Texas. He moved to Texas in 1990 when he was part of a Hawaiian group that purchased 800 multi-family units and two healthcare oriented office buildings. In 2001 he established a residential sales and management company (predecessor to Infinity Residential Real Estate) and grew the company into a successful Real Estate group providing Residential, Commercial, and Management services.

 

Infinity Commercial Real Estate is an innovative, full service real estate brokerage company servicing north central Texas since 1999.  Reach us at 469-429-4949 or send us a message.


Infinity Residential Real Estate is an innovative, full service, real estate brokerage company servicing North Central Texas since 1999. Infinity has multicultural, licensed agents specializing in all areas of the DFW Metroplex. Our agents work in all areas of real estate, including apartment locating, residential sales and purchases, home building, residential and commercial leasing, as well as commercial properties.

David Lewis, the current broker, has been engaged in real estate business since 1990 in Hawaii. He moved to Texas in 1998 when he was part of a Hawaiian group that purchased 300 multi-family units and two healthcare oriented office buildings.