OKC Realtors: Is it really cheaper to buy a foreclosed home?
Buying a home is all about balancing the perfect set of features with price. This might make foreclosed home look more attractive as common wisdom says they’re cheaper, but are they? Well, OKC Realtors is here to set the record straight.
According to most data, it is actually cheaper more often than not to buy a foreclosed home. Depending on where you buy the home, it may be anywhere between 18 to 59% cheaper than surrounding homes. And while this initial price reduction might make the home seem like a steal, there are a few things to consider when buying a foreclosed home.
Foreclosed homes often show signs of stress and neglect. People who get behind on payments often stop taking care of the home as well. The previous tenants may have also become upset at losing their home and done damage to the home on there way out. Banks are not likely to fix these damages either. The other thing to keep in mind is who owns the home in the case of a foreclosure. Unlike other homes, foreclosed homes are owned by a bank. Homeowners will try to make small improvements to help increase the value of their home. Banks are usually just trying to recoup losses on a foreclosed home and are less likely to make these improvements as a homeowner will. Before you buy a foreclosed home, make sure that it hasn’t deteriorated to the point that it’s not worth the price cut to make it livable. The home may be cheaper up front, but if the home has been left idle long enough, it might cost more to renovate the home than to just buy a new home!
If your in the market for a new home, give Metro First Realty, OKC Realtors, a call today at 405-242-4004!