Thursday, April 17, 2014

Contingency Strategy for Low-Risk Foreclosure Investors


Despite the winter’s chilling effect on all sorts of sales, February saw single family homes, condominiums and townhomes selling nationwide at a full 7% increase over a year earlier. The opposite is true of foreclosures—no surprise, since the health of the market means fewer serious borrower delinquencies, hence fewer foreclosures.
Even so, Metairie foreclosures are still available, possibly because some of the fiercest competition may be tailing off. Real estate watcher RealtyTrac finds that the institutional investor buying spree appears to be losing steam—which could be very good news for individuals interested in purchasing foreclosures.
Typically, Metairie foreclosures are listed on an as-is basis -- and that means exactly what it says. Whatever is wrong with the property will remain unfixed. Unlike a traditional home sale where you can negotiate with the seller to fix problems or provide credits to counterbalance the expense to have them fixed, when you buy a foreclosed home as-is, that option isn’t available.
When you are up against time pressure to submit an offer, you do have other strategies. One is to hire a qualified home inspector to go over the property, then make your offer contingent on the results of the report. That allows you to know what you are getting into before you commit. If it turns out that the repairs needed are minor, you can choose to go forward with your purchase. If there are too many costly problems, or if there are an overabundance of unknowns, it might be in your best interest to pass. A contingency like this gives you the freedom to weigh your options carefully before you make your decision.
One other issue to keep in mind is the insurability factor. If you believe your offer represents good value even though the property has significant maintenance issues, remember that in most cases you will need to have a home insurance policy in place before you can close. Ask your insurance agent to check the property to determine whether it can be insured. If the first answer is no, you can still check with other companies—but keep in mind that in the world of foreclosures, this can become an insurmountable obstacle.
Buying foreclosures in Metairie needn’t be overly risky when your approach includes careful evaluation of the target property. Metairie foreclosures are still out there, and with care and patience, you should be able to find one that is right for you. Interested in discussing further? Contact me today!




Terez Harris NOLA Real Estate Group
(504)297-2619
Harris.Terez@gmail.com









Keller Williams Realty New Orleans 8601 Leake Ave. New Orleans, LA 70118 504-862-0100


Each office independently owned and operated. All brokers licensed in the state of Louisiana.

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