Most people treat foreclosure as an ugly word. It evokes images of broken down and boarded up houses in bad neighborhoods. But to people with a keen eye, foreclosures represent excellent investment opportunities. When a home is foreclosed on by the bank, it simply means that the previous owner was unable to make their mortgage payments, or possibly that they intentionally defaulted if they had a higher balance left on their mortgage than the house was actually worth due to a real estate bubble.
These foreclosed homes are available for purchase by savvy investors. Many people are familiar with real estate auctions, where these foreclosed homes are sold to the highest bidder. However, many of these homes go unsold at auctions, and they subsequently become owned by the bank (these are also known as real-estate owned, or REO, homes). These REO homes have the potential to offer an excellent return on investment.
Why Buy an REO Home?
There are many reasons that people choose to invest in REO homes. The bank is the actual seller of the home, and they will likely have several other REO homes in addition to the one that you are interested in purchasing. This means that they will be more likely to negotiate with you on the price – meaning that you most likely can get the house for below-market value – because they are trying to clear out their inventory, whereas most homeowners are mainly concerned with getting a fair price for their home. Because of the bank’s desire to move properties it owns, the market can also move quickly in addition to offering a nice value for a buyer.
When a bank becomes the owner of a property, they waive any previous liens that might have existed. This means that an REO property will have no outstanding taxes or unpaid bills that you will be forced to foot the bill for once you become the owner. Buying a home that the bank owns also means that there will not be any messy ownership issues that need settling before you can put your name on the title.
Many experts believe that purchasing a bank-owned homed is one of the safest investments in real estate. In addition to the reasons listed above, prospective buyers can request a home inspection prior to closing on the property, which is a luxury not afforded those that choose to purchase a home from an auction. This extra peace of mind can make all the difference for many home buyers and real estate investors.
The South Jersey Real Estate Difference
The toughest part about buying a property owned by the bank can be learning about the property in the first place. Fortunately, many banks enlist the help of experienced realtors to aid them in marketing and moving these homes. In Burlington, Camden, and Gloucester, the name to trust is Roxanne Ardary at South Jersey Real Estate. I know the area better than anyone, and I make sure to stay on top of the latest trends in home values and location. I understand the appeal of a South Jersey home to anyone, whether the prospective buyer is new to the area or has lived there for their entire life. This allows me to help anyone find the perfect home in the perfect area.
This knowledge extends to the market for foreclosed homes available for sale and bank-owned properties. I make sure to keep an eye out for properties that go into foreclosure so that I can aid real estate investors and home buyers alike in purchasing any of these properties. After all, a head start can make all of the difference in any industry, particularly one as competitive as the real estate marketplace. When you also factor in that bank-owned properties have many other incentives for buyers such as low interest rates, prices below market value, and the absence of most problematic issues that home buyers face, it only makes sense to trust an expert when you look to purchase one of these properties. I have plenty of experience in the foreclosure and REO markets, and that experience, combined with my aforementioned knowledge of quality real estate in South Jersey, enables me to provide the highest levels of service and expertise to any buyer that requests my services.
This expertise extends beyond simple market knowledge, however. One of the major reasons why people trust the South Jersey Real Estate brand is because I work hard to provide a personalized touch to the service I provide. I want my customers to know that they have received the best possible service and that I have put in the necessary work to ensure that their needs are met. I will happily answer any questions about the area, homes for sale, or any other aspect of the marketplace. My number one goal is to make sure that my customers have the highest level of comfort with the area and their dream property. After all, nobody wants to go through an important process like buying a home and feel like they still have nagging doubts even after closing the deal. I make sure to alleviate any and all concerns before the deal is done, and my customers can feel confident that they not only made a smart purchase, but also that their new home will provide the backdrop for many happy memories in the coming years.