Growing Foreclosure Market Provides Opportunities for Buyers

March 6th, 2009

Although North Carolina is not as badly affected as other parts of the state, the growing foreclosure market could provide opportunities for suitable buyers.

Michael Patrum is one of the many hunting for a house and sniffing around for the best deals. By profession he is a builder and targets the “worst house in the best neighbourhood” in the quickest possible time so as to make money out of it. To do so he has to focus on foreclosed houses. He wants to invest trying to get back his money within few weeks with profits. He has just started getting the feel of the foreclosure market and is hopeful that if one can find the right house then there are profits to be made from it.

Realtors say that not only builders but also those who are looking for a home to stay in, this is best time to strike when the iron is hot. Larissa Hess of Allen Tate Realtors commented, “Foreclosures have become a bigger part of our market, and therefore we need to learn about them and we are selling more foreclosures.” She carefully guides her clients through the entire procedure of purchasing foreclosed houses.

Like other businesses here too there are catches. The foreclosed property is sold on an as-is basis. This means the seller provides no guarantees or warranties. The entire responsibility of fixing up the property lies on the purchaser. Inspection has to done within a very short time and immediately after that the decision about buying it has to be taken. But despite the negative points there are many benefits like instant equity. The seller is anxious to get rid of the house and will offer a generous asking price. One can easily bring that considerably down because of the extreme shortage of buyers.

From the current trend it seems that many more foreclosed units will be rushing into the market and this means plenty of opportunities for buyers. It is a question of the right person knocking at the correct time. If that clicks then there are real bargains going. Experts warn that not only the novices but also professional buyers should test the waters carefully before wading in. Some of the houses are in such a sorry state of disrepair that bulldozing it down seems to be the only answer. As such the value to be calculated is that of the land and the scrap of the pulled down building.