Pros and Cons of Buying in a High-Foreclosure St. Louis Area for You
St. Louis foreclosed properties are great for getting good properties relatively cheap and in good condition, but buying into a St. Louis area where foreclosed homes are common isn’t always a good thing. Though they can be tempting to purchase, there are other things to consider when buying in a high-foreclosure St. Louis area.
Here’s what you need to know when deciding whether or not to buy in a high-foreclosure St. Louis area.
Lower Prices
What’s great about foreclosures is that banks and lenders don’t usually want to hold onto them for very long. The longer the bank holds the St. Louis property, the more taxes and maintenance that must be paid. With such a motivated seller, there’s a good chance you’ll get a good St. Louis property at a very steep discount.
Of course, if the whole neighborhood is selling at a lower price, then you can’t expect too much of a discount.
Plenty of Options
Anyone can foreclose a property, from big luxury mansions to comfy bungalows. No matter what you’re in the market for, you can find great St. Louis properties that will fit your needs and match what you’re looking for.
Potential for Appreciation
Appreciation is a big factor with foreclosed St. Louis homes. After you buy, you’ll see the value of your property go up right away. If you make small adjustments and repairs, then you’ll add even more value. Once you’re ready to sell, you may be able to command much more for the home than you bought it for.
Even if you buy in a high-foreclosure St. Louis area, there’s a good chance others will buy the foreclosed homes quickly. This will also raise your property values.
Improving Community Stability
Many high-foreclosure St. Louis areas have unstable property values because the foreclosures bring them down. By buying these foreclosed properties, you’ll actually help stabilize the community and bring those property values back up. Others may also be encouraged to buy the other foreclosed properties, and together, you can revitalize the community.
A Lot of Competition
Foreclosed homes don’t stay on the market for long. If you’re not quick, you’ll miss them.
Big Repairs
Some foreclosed St. Louis properties are in bad shape, and they need more help than you might be willing to give. The previous owner may have trashed the place, or they may have run out of money for basic repairs. If you’re not ready to take on a rehab job, make sure you investigate the property before buying to avoid getting a surprise after you close.
Property Instability
Crime rates are often directly related to the amount of foreclosures in the St. Louis area. If crime rates are high, then your property might be at risk for thefts, and it can also hurt the resale value if the community doesn’t improve.
Surprise Costs
With some titles, the debts may still be outstanding, waiting for the next owner of the title to pay off the debts. You don’t want to pay someone else’s debt, so do a title search before putting in an offer.
High foreclosure areas offer plenty of great opportunities, but their costs are high. Understand your needs and risk tolerance before investing in a foreclosed St. Louis home.