Take a Good Look in the Mirror Before Buying a Bank Owned Home
I have a plea that I would like to put out to all first time home buyers who are real excited about getting a ton of money by buying and fixing up a foreclosed property. Before you decide to make that purchase, look real hard at your situation and the whole picture involved in buying distressed properties.
First thought - If you don't have the money for closing costs and down payment, then you obviously will not have the money to do repairs.
Second thought - I know that everyone in your family is a licensed contractor (listen to the sarcasm there), but do they have a lot of free time that they want to devote to you.
Third thought - How much spare time do you have in your day to tinker around on a house? If you work 10 hrs a day, while it might be fun at first, when the novelty wears off you aren't going to want to tinker with Sheetrock at the end of a long day.
I bring these thoughts up because I have seen way too many people (mainly first time home buyers) go out and buy a foreclosure with some grand plans for repair. Only to find out that they lack both the time and the money to actually repair anything in the home. Don't get me wrong, sometimes buying a bank owned home is exactly what a person should do. But there are other times when a person might be better served looking at some smaller, better maintained homes to start with. Remember, as a first time home buyer you are looking to buy a "starter" home. Make sure you are getting off to a good start.
Jason Tangen - GRI, e-PRO - Real Estate Broker Associate with Edina Realty in St Cloud MN
http://StCloudEdina.com - Get a free list of the bank owned properties listed on the St Cloud MLS.
http://JasonTangen.EdinaRealty.com - Home of the e-Market Analysis on-line home value estimator.
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