Bank Foreclosures & Short Sales

By Brittany Simonelli on August 25, 2009

In today’s market, normal resale homes are competing with the foreclosures in order to sell.  Many times you will find that condition vs. price, the non-distressed sales are actually where many good deals can be found.  (without the work involved in many of the foreclosure homes)

I have toured many of these homes, especially within the past two years.  The majority of these properties need a great amount of work.  Typical repairs will include landscape cleanup, new flooring, paint throughout, drywall repairs,  roof repairs and plumbing repairs.   Plumbing leaks are common due to the winterization/dewinterization process which is done on every home which puts pressure on the systems when drained and refilled.  Appliances generally are no longer in the property either.  It is also common to see a wet basement as the electric is off for months during the foreclosure process, so no sump pump is running to stop the basement from flooding during heavy rains. 

These homes are priced to reflect condition, however because these properties are sought after in the current market, bidding wars tend to drive the price up higher than list price.  You can see how these can quickly go from being a good deal to a not so good deal.  They appear to be below market on the surface, however once you factor in the work to be done and the bidding war, you may as well have purchased a normal home that is in better condition.