Continuing from my last blog, foreclosures can represent a good value. Before you can assess if a property is a good value two things must be done. An Inspection and a market analysis.

Generally a buyer is not allowed a full blown inspection until the home is under contract. It is my opinion you need to look at these homes with an experienced agent like the Brian Maecker Team. When looking at these homes, look at the yard, the roof and the paint on the exterior. Try to determine how much money it will take to bring it to average to good condition. A simple paint job averages $2000. Go inside and look at carpet, paint, baths and kitchen. Most of the foreclosed homes need something. An experienced agent can help determine the home needs and the price tag that goes with it. Add up the dollars and save the total.

Next have your REMAX agent do a market analysis. Look at area solds and actives. Analyze their condition versus the subject. If the subject is priced below the solds and the dollars to improve it are still below the solds, it’s a good value.

Unfortunately, I am not seeing good values in the foreclosure market. Recently we had clients that bid $43,000 for a condo. It needed mold remediation, carpet, paint and totally new bath. We estimated the repairs at $12,000. The values in the area were $55,000-$60,000. Another person bid $57,000 for this home. I believe the buyer and their agent did not look at a market analysis or the repairs correctly. “Bad Investment for that Person.”

Don’t let that happen to you. Let the Brian Maecker Team with over 30 years of experience help you make a good investment. Visit us at www.maecker.com.  

Thanks,
Brian