For many real estate investors, buying a foreclosed home has become a popular investment strategy. They believe that buying a foreclosed home is an easy way to make money. However, sometimes it can come with risks and complications, and not all investors are successful. So before you consider buying a foreclosed Waltham home as an investment property, here is some insight from a Waltham realtor!
What Is a Foreclosed Home?
A foreclosed home is one in which the owner is very much past due on their mortgage payments. When this happens, the mortgage lender will start a legal process to take ownership of the home back. Foreclosure can also happen if the homeowner does not pay their taxes.
Once the mortgage lender gains possession of the home, it will then be auctioned off. The auction process is very competitive and most people who win the auctions end up being all-cash buyers.
How to Buy a Foreclosed Home
If you’re interested in buying a foreclosed Waltham home you need to first know where and how to find them. There are websites available that can help you find them. If you cannot find any online, reach out to your local Waltham real estate agent and they will be able to help!
Before buying a foreclosure, you should understand that it can be more complicated than you might think. It could also initially cost you more money than you might think. This is because these homes are often in bad condition and require a lot of work to be done on them.
Benefits of Buying a Foreclosed Home
While there might be some risks when buying a foreclosed home, there is also a chance that it ends up being very successful. Here are some of the benefits you can come by!
It is very possible to save a lot of money when buying a foreclosed Waltham home. There’s a chance you could find a luxury house in foreclosure and you won’t have to pay the super high price associated with them. Foreclosure homes tend to be 20% - 40% less than the market price.
Big Return on Investment
Foreclosure homes can be a great way to make a quick and high profit. In some cases, you might find one that is sold under the market value and then you can resell it quickly at market value or even above it. That could end up being an instant profit of up to 40% - 70%. Also, if you hire a Waltham real estate agent to help you sell it, you could possibly get an even higher price for it!
Less Competition than Traditional Home Buyers
Since there are not many traditional Waltham home buyers looking for a foreclosed home, there is less competition for you! This means you’ll have less stress and pressure when bidding on the foreclosed home.
Cons of Buying a Foreclosed Home
Buying a foreclosed home can also come with many drawbacks. Here are some that you should be aware of!
You’re Buying the Home “as is”
As mentioned above, a foreclosed home might be in bad condition and in need of a lot of work. You also won’t have the chance to inspect the home and reject it because of anything not being up to code. If you don’t like the structure or the state the home is in, Waltham realtors suggest not to go through with buying it.
Since you’re buying the home “as is” you might have a lot of repairs that need to be made. These repairs could be costly and you could end up spending a lot more money than you expected. It could be more than just a simple paint job, there’s a chance something like the roof could be falling apart or there’s a bug infestation inside.
Liens on the Property
There could be liens on the property that you are not aware of. If the former owners took out loans to make repairs or improve the home, there’s a chance they didn’t pay those loans fully off. Therefore, the lien holders might come to you to pay them off since they can’t collect from the previous owners anymore.
Contact A Waltham Realtor
Before deciding if buying a foreclosed Waltham home is the right move for you, consider talking with a Waltham Real Estate Agent. Waltham Realtors know the ins and outs of what comes with buying a foreclosed home and can help you decide if it’s a good idea or not. Contact Waltham Realtor, Hans Brings, today for assistance! 617-968-0022