Buy a House Fast

What I need to know before I go home-shopping

People are sometimes concerned that they can only afford foreclosed or short-sale houses. It worries them that they won’t be able to move into their new home immediately, and can do so only after considerable renovations. Is that true? Read on to know more…

Myth 4
Foreclosures and short-sales are a bad investment.  I’ll have to spend through the nose to fix up the place and make it livable!

Fact
Maybe, Maybe Not.

If you’re already looking for a house, you’ve probably noticed that there is no dearth of short-sales & foreclosed houses on the market. In general, most houses that are listed as bank-owned properties often need a face-lift. As unfortunate as it is, people who’ve lost their homes to a foreclosure, may have done extensive damages to the place. There have been cases where houses were missing basic fixtures like carpet, air conditioning, major appliances and even cabinets.

With a short-sale, you need to be a more informed buyer and do your homework and account for the house’s condition before you sign the deal.

Having said that, not all REO properties are distressed. The truth is that more than half of the houses listed are move-in ready, and are usually sold at the current market value. Renovating a foreclosed home/Real Estate Owned (REO) property becomes an added cost for the bank that owns it. However, that doesn’t stop them from touching up the basics in order to make the house ‘saleable.’
Again though, sometimes banks leave it ‘as-is,’ because there is a demand to buy some of these properties at a much cheaper rate, which can work as an asset in the long run. Then again, does this seem like an exciting deal?

What can I do?
Well, if you are buying a house listed through Express Realty Services, you can be sure the property has been accurately inventoried for any damage or missing items. We also work closely with the lending banks to assure that the condition of the house matches the exact description in our listing so that there are as few surprises as possible. We are experts at caring for and selling bank owned properties – we sell more than 300 a year. Just call Express Realty Services at 1-888-306-9450, and get ready to pack all those suitcases, right away!

Want to dispel more myths? Check out the other blogs in this series: Myth 1; Myth 2; Myth 3

Real estate agents and everyone else connected with the housing industry are shaking in their boots.

Will a shadow inventory of low cost homes flood the market?

• Many foreclosures have not hit the market but are in lender’s inventories throughout the county.
• Many modified loans won’t make it past the trial period and will foreclose, while others will default again – as has been the case of 51% of loans modified in early 2009.
• More homes will foreclose when their adjustable rate mortgages reset this year, sometimes doubling house payments.
• Homeowners with negative equity may fall into foreclosure or may chose to strategically default.
• Many investors who bought foreclosure bargains to flip them may put them on the market rather than renting them out.

If these hit the market all at once, the results could be disastrous.  Housing values that have crept up in DC and throughout the country could be quickly undercut.  However, not all is lost.

There are potential reasons why this may not happen if all parties involved in foreclosures act just a little differently.

• Banks could offer meaningful modifications that would keep people out of foreclosure.  Some homeowners in over heads might still lose their homes, but the numbers would be way down.  The latest modification in Making Homes Affordable announced on March 26 might facilitate principal reductions for some.
• If new programs designed to bring underwater-homeowners back to shore are effective, people may have fewer reasons to walk away from their homes by choice or by circumstances.
• Investors might see the wisdom of renting out their properties, especially if they paid cash, in an economy where loans are harder to obtain.
• In the best of circumstances any or all of these factors will lessen the amount of shadow inventory on the market, which will allow continued improvement of the housing market.

Regardless of what’s lurking in the shadows of the housing market, Express Realty Services can help you find an affordable home in DC, Maryland, or Virginia.  Contact us today!