Pros & Cons to Buying in a High Foreclosure Area (Part 1)
Buying a home is one of the biggest decisions you will make in your life; it can also be one of the most time consuming processes you can take on. This means you need to do as much research as you can before you get started. One of the first decisions you will make is what type of home you will look for and eventually buy. To this end, have you considered foreclosure homes as an option? Here is a list of the pros (with the list of cons coming in our next post) in buying a home in an area that has been heavily impacted by foreclosure.
The Positives
Price Cuts
Foreclosure properties offer two very big benefits to the buyer: lower costs and many options. Your options aren’t limited to old run down homes as foreclosure hits all types of properties and people. This means that both small quaint houses and luxury homes (and everything in between) are options for you to purchase at lower prices. Banks don’t want the properties to stay in their hands because they don’t want the costs of upkeep, which means that you can usually find a great deal on a home at a reasonable price.
The Property Value Can Increase Quickly
Remember that buying a home at such a low rate means that it has the potential to increase in value depending on the improvements and upgrades that you make. If you add the right improvements and upgrades then when you sell down the road you can make more than you paid for the home.
Helping the Community
When you buy a foreclosure home and fix it up you aren’t just adding value to the home; you are adding value to the community and giving back to it. Even if your home isn’t a foreclosure, the home you buy in a high-foreclosure area will still add value. The improvements made can cause a ripple effect, helping to make at least one section of the community look better and thus, adding value. Giving back to the community creates the potential for a very close neighborhood that you love living in.
As with any real estate decision, the more you know, the better off you will be. Making an informed, educated decision – especially when dealing with purchasing a foreclosure property – will allow you to make the best move for both you wallet as well as your family. Stay tuned for our next post that will discuss the risks involved in purchasing a foreclosure.