The foreclosure stats are staggering by without doubt. Bank owned properties have overrun many markets and are commonly deleterious to neighborhood values. Foreclosure properties are commonly the worst kept properties in the neighborhood with vandalism and property burglary frequent. Shortage of homeowner engagement frequently causes the property to deteriorate at a quicker than ordinary pace.
These elements have made a negative image for foreclosures in numerous regards. Imagine being a homeowner next to a badly maintained foreclosure property. This image makes it simple to comprehend the negative connotation linked with foreclosures in many neighborhoods. The market has created a universal mental picture when it comes to foreclosure properties.
Here’s the problem: negative image drives down home values. Several of the biggest corporate sellers have realized this fact and are rebranding to a kinder, more engaging repo property. Sellers such as Fannie Mae, Freddie Mac and HUD are trying to meet minimum property standards and are presenting a fresh look at their home inventories to house buyers. Fannie Mae and Freddie Mac often now make enhancements to the property—new carpet, appliances, paint and other repairs—to bring the property up to neighborhood standards. These properties aren’t always your standard repo!
Enter the updated promoting for these homes: the largest being HomePath, HomeSteps and HUD’s HomeStore. The websites for these houses have a fresh new look. Your basic list of foreclosures supplied by a local MLS is gone and replaced with a very easy websites with lots of pictures, property details and contact info. There’s even information related to financing and closing cost promotions linked with some properties.
Buyers in the market for a new home should review their attitude on foreclosure properties. These properties have come a good way and regularly compete now directly with fair market sales in terms of condition, appeal and quality. A house buyer should keep all houses under consideration , even HUD homes for sale in the area. A buyer might be surprised at these foreclosure prospects.
Buying a foreclosure can be a sound investment so long as a buyer is acquainted with the process and possibilities. Tom Webb is a property investor and agent. Tom provides details about buying and marketing REO and bank owned homes at the REOOpportunity.com website.