Is a St. Louis Foreclosed Home For You?
Chances are very good that you associate foreclosure with getting a brag-worthy deal on a home. Although there are good deals to be found, you may need to lower your expectations a little to avoid being disappointed. Below are BZ Home Buyers tips to understanding the St. Louis foreclosed home process.
Pricing is Not that Great
Pricing on St. Louis foreclosed homes can be below market value, but it is not always as exciting as you think. On average, you can expect to pay about 5 percent below market value. If you are expecting at least a 20 percent discount like what was seen in the past, you will definitely not be pleased.
Needs Work
You are not going to find a turnkey home in foreclosure home listings. If you are going to go down this path, you need to be prepared to invest time and money into it. Furthermore, you may not even be able to live in it right away. It is not uncommon for folks to take everything out of them when they leave or at least leave behind a destructive mess.
Invest Money
If you negotiated a good deal, you may have saved some money in the buying price, but now you have to invest in getting the place fixed up to live in. This could end up costing you more in the long run.
Sacrifice Location
With foreclosed homes, you may have to expand your search to areas that you were not really interested in. At this point, school district becomes a huge concern. You have to decide how much you are willing to budget in this department.
Short Repayment Period
When you purchase a foreclosed home from an auction, you only have a short amount of time to get your financing together. This means that waiting for your own home to sell before buying another is not going to be an option.
Extra Paperwork
As if there is not enough paperwork to fill out and sign when you buy an average home in the market, buying a foreclosed home easily increases the paper trail. It is also worth noting that this paperwork varies depending on what stage the foreclosure the home is in.
A really great deal can be found on a St. Louis foreclosed home, but it is probably not going to fall in your lap. This is especially true if you have your heart set on a certain area. Make sure that you are prepared for the positive and negatives that come along with making a purchase of this nature and do all of the homework you can to help create a smooth process.