Is a St. Louis Foreclosed Home Right for You?
Shopping for a St. Louis foreclosed home is kind of like shopping the clearance section of your favorite department store. You may find a lot of great deals, but if you open the boxes on the shelves, you may find broken glassware and missing pieces. A St. Louis foreclosed home can come with a number of benefits, but it can also have some major problems.
Here is how to decide if a St. Louis foreclosed home is right for you.
Great Selection
For St. Louis buyers, foreclosed properties are yours to consider the minute they hit the market. Investors cannot put in an offer for the first 15 days. During this time, you’ll have the opportunity to make great offers and get properties for prices below market value.
Better Prices
It cannot be stressed enough: St. Louis foreclosed homes are usually priced quite a bit lower than the actual market value. It does vary by property. If you have a good property in a great location, then the discount may not be as much as a fixer upper in the same location.
Less People to Compete With
A lot of St. Louis buyers stay far away from foreclosures for reasons discussed below, but that can actually work in your favor. It means you’ll have fewer people competing for the properties you want. With investors being held off for 15 days, you can shop around and think carefully before putting in an offer.
Better Appreciation
If you buy a St. Louis home below market value, then there’s a good chance it’ll begin appreciating from that very first day. With just a few minor repairs and cosmetic updates, you’ll see your St. Louis home’s value appreciate in no time.
Banks Set Living Requirement
To buy a home within the first two weeks, most banks will insist that you live in the property for at least one year (so really, not all investors are excluded during those 14 days). They may set other requirements too. You might have to move in within 30 to 60 days of the close, and you may not be allowed to resell or rent out the property for that first year.
Foreclosures Slow Appreciation
Foreclosures don’t reflect well on a St. Louis neighborhood. Having one might not hurt too much, but having a few can bring property values down, which means your property’s appreciation might not go up as quickly as you’d like. Though you may see some appreciation right away, it will be slow growing in the years to come.
Crime Rates
Many St. Louis foreclosed homes are in areas where crime can be an issue. This affects the neighborhood as well as the school district. It may keep your property values down, and your school district may not be as good as you or your renters would like. You may need to install a security system to keep your property secure.
Trash and Damages
Some owners don’t treat their properties well. If the previous owners knew the house would go into foreclosure, they may have stopped taking care of the place, which means there could be huge renovations and repairs needed. This can be a major factor for your budget so before you buy, try to look at the house and see what may need to be fixed.
You need to consider all these factors before buying a St. Louis foreclosed home. Before you enter the marketplace, do your research on possible areas you are interested in so you can act quickly if an opportunity arises.