Foreclosures are dropping in popularity over months past at least in certain circles. Interestingly, the newer a buyer is to the whole real estate game, the less likely they are to look at foreclosures as an option. The more experienced buyers out there are looking a lot more seriously at buying foreclosures because they are more comfortable with the purchasing of real estate in general.
For many home buyers, a foreclosure is a less than ideal purchase for a number of reasons; some buyers are rightly concerned that a home that they don’t have access to for the purpose of home inspections has the likelihood of being a potential money pit. Other home buyers have grave concerns over a foreclosed home losing its value and the risks of taking on a home that may have been vandalized while it was vacant or by the previous tenants who’re often angry about losing their homes. There are also a small percentage of home buyers who’re concerned that buying a home that someone else lost to foreclosure is bad luck.
Even with the large number of negative perceptions about foreclosures, foreclosure sales are likely to increase again in the spring in response to the extension of the home buyer’s tax credit and the picking up of the real estate market after the winter slump. This is a bit of good news for the market, as more foreclosures are likely to find their way into the market after the New Year, due in part to the fact that it is still very difficult for home owners struggling to pay their mortgage are having a hard time getting help with modifying their mortgages even still.
While some of the concerns that buyers are expressing are good reasons to be wary about purchasing foreclosures, there are many other good reasons to buy them. The key to doing this in a successful manner though are working hand in hand with a Realtor and doing your research instead of just jumping into a purchase that you’re not sure of. Find yourself a Realtor who has experience with foreclosures for your best chance of success and let them help you make a good buying decision.