Foreclosure can be a scary word for some people. While these trepidations around the term aren’t entirely unneeded, many people who decide to buy a foreclosed on house are getting away with an incredible deal, if they do play it correctly. The following outlines some of the things to look out and be aware for when it comes to buying a home in foreclosure.
Cons of Buying a Home in Foreclosure
Buying a home in foreclosure certainly isn’t for anyone. Especially for the inexperienced home buyer, this might not be comfortable territory. Sometimes, homes that have gone into foreclosure can be neglected by the owner and therefore ask a lot of you after the point of purchase. Repairs can get costly, and can sometimes come up unexpectedly. While you’ll usually get the house at a lower price, the repairs might come at an alarmingly high price for some homes.
Since the prices are normally lower due to banks not having to worry about paying off debts as foreclosed homeowners commonly do, people who know how to work the foreclosure market can make the purchase a competitive experience. Many homes in foreclosure are not in horrible shape, and therefore offer a good investment to interested and experienced buyers, but a challenging steal to take if you don’t know how to maneuver it just right.
Pros of Buying a Home in Foreclosure
As mentioned in some of the things to look out for, foreclosed on homes often come at a more reasonable price than usual. When a home is foreclosed on, the bank is then responsible for it. When a homeowner is selling their house, they will often jack up the price of the property because of the return they are looking for. Since banks do not have debts to motivate them when it comes to selling a foreclosed on home, a buyer will often get a better deal on the home than they may have if it was being sold by the owner.
Not only are banks more likely to give you a lower price, but they’re also more likely to sell the home quickly. The bank will not have motivation for keeping the foreclosed on home, and therefore will be more likely to cooperate and make the process move smoothly.
With these things in mind, you will be able to decide if buying a home in foreclosure is the right move to you. Its benefits can be incredibly rewarding, but it is important to be weary of the right things and ask all the right questions.
Buying your first house is a monumental life event. In many scenarios, this is the first property that a person has owned or has full possession on. With this new aspect of your life comes a great deal of responsibility. As owners will likely spend a lot of money for renovations and improvements, there are a few tasks that should be taken care of right away!
When you purchase a home, there were most likely parts of the home that you wanted to initially fix. If they weren’t taken care of by the previous owners, then it will probably be first on your to-do list. One of the first things to make sure it in place is security systems. In older homes, it is unlikely that a home security system was put in place. There are plenty of budget-friendly options for keeping your home safe, so finding one should come easy.
Another crucial step, listed high on the to-do list includes compiling a list of repair companies in the area. It is much easier to pull out your list as an emergency is happening, rather than frantically researching them as your pipe is leaking. In addition to finding reasonable sources for repairs, make sure that you are aware of what parts of the house will eventually need TLC.
Your home is an investment. Make sure that you are incorporating time into your life to take care of it. You will get out of your home what you put into it.
If you’re ready to list your house on the market, it’s essential to get it prepared to sell it by improving its overall condition. Most homes need minor repairs or upgrades to make it stand out and remain competitive. If you want to improve your home before selling it, there are a few easy changes to make.
Painting certain rooms of the home are one the easiest and most affordable ways to transform the setting and allow it to look contemporary. Rooms with bold and bright color shades can turn off buyers who don’t envision themselves living on the property. Opt for using neutral color shades that create a bright and airy setting, which will make the interior space appear spacious.
Remove Popcorn Ceilings
Popcorn ceilings are considered to be an eyesore and can be toxic. You can dedicate one or two days to shaving down the surface to prevent the home from looking dated. Purchase a solution from your home improvement store to soften the popcorn material before it’s scraped off.
Replace the Light Fixtures
The light fixtures are one of the main features of the home that dates the property, making it necessary to replace them after 10 years. New chandeliers and fixtures are often affordable and easy to install yourself or with the help of an electrician. You can make a statement with a chandelier that is installed in the entryway, dining room, and even the laundry room.
Makeover the Cabinets
Although the cabinets may be expensive to replace, you can give them a makeover if they’re still in excellent condition. Sand down the surface and add a fresh coat of paint, which can create a neutral setting or will add a pop of color in the room. Painted cabinets are increasing in popularity and will make the room appear inviting. Installing new brass hardware will complete the look and can boost the value of the home.
Improve the Curb Appeal
Improving your home’s curb appeal is essential because it will determine if buyers decide to visit the property. Add new address numbers and a mailbox to update the exterior. You can also install a porch swing with potted plants, which will add extra character to the building.
About Tracey Rancifer
Tracey Rancifer was born and raised in West Little Rock Arkansas, a city which has been influential in the way she thinks about commercial and residential real estate. She attended Rhodes College pursuing her B.A undergraduate degree in Political Science, and then University of Little Rock, Arkansas for her Masters in Public Affairs and Administration. The breadth of her work experience involves and is not limited to working as a development executive with private entities, and in the public sphere with the municipal and federal government level. Tracey Rancifer provides her clients with a solid consultation and approach to real estate buying and selling through the “Tracey Difference”, a phrase coined to distinguish her results driven approach to buying and selling properties to her clients.
Finding an agent in Little Rock takes minimal effort. However, finding a real estate agent in Little Rock who will tailor to your best interests, and those of your family’s might take a little more work. This is where Tracey Rancifer comes in. Tracey has worked as an executive in municipal government, federal government, and as corporate development executive. With professional experience and higher education, Tracey possesses the negotiating skills, logistical tools, and academic abilities to provide superior client service from contract to close during the real estate transaction process.
Tracey Primarily Focuses in these areas:
- Chenal Valley (West Little Rock)
- Wellington (Villages of Wellington)
- Central Arkansas (Maumelle)
- The Heights/Hillcrest
Tracey Rancifer is highly involved in her community, and in various real estate associations in the area. As an Arkansas native armed with lifelong personal knowledge of the area, Tracey has extensive experience in the Little Rock metro area and integrating this experience to establishing her company has proven to be very advantageous. Currently, Tracey serves on the Arkansas Home Inspection Registration Board, American Heart Association – Go Red Committee and the Arkansas Real Estate Foundation.
In 2005, Tracey Rancifer was voted real estate agent finalist in the Arkansas Democrat Gazette’s “Best of the Best” Real Estate Agent Division. Considering every real estate professional in Central Arkansas was eligible to be nominated, the distinction of being named a finalist represents Tracey’s work ethic, professionalism, and commitment to her client’s objectives.
Whether you are buying or selling, find out for yourself what the “Tracey Difference” really is and it won’t take long to discover why she really is the “Best of the Best” in the Little Rock metro area.
“Deal of the Year” Award from the Real Estate Board of New York (REBNY)
Named one of the three new inductees to the Ethics Committee of REBNY
Named to the Executive Board of New York Residential Specialists (NYRS).