With all the talk of the great deals you can get on foreclosures in Santa Cruz, you may be tempted to step into the investment market. Or, you may get the idea that buying a foreclosure is your best bet for a great deal on a home. Well, it’s possible, but remember that the foreclosure market is full of perilous pathways and competitive investment pros who know what they’re doing.
Whether you’re considering purchasing foreclosures in Santa Cruz as investments or as your personal residence, here are a few tips that will help you get a great investment and avoid a bad disaster.
• Gather a Team of Professionals: Your team of professionals should include a home inspector, a real estate agent and an appraiser. You may also want to include a professional repairman, if you’re not handy. With foreclosures, you often have to be ready to move on the home immediately, so establish relationships with these professionals ahead of time.
• Buy a Pre-foreclosure: According to the experts, pre-foreclosure is one of the best times to buy. The seller will probably be more willing to accommodate you because they want to avoid ruining their credit. Which means you’ll have a much better chance of getting a good deal – something more than the seller owes the bank, but less than market value.
• Skip the Auction: While going to foreclosure auctions is another possibility, it isn’t for the beginning investor. You may find that you’ve done a whole bunch of research for nothing, because the auction was cancelled. You may end up with a trashed property because the previous owners didn’t want to move, or because the house has been empty for a long while.
• Be Careful Buying Bank-Owned Properties: This option is seldom as great as it sounds. Not all banks price homes at fair market value. Many of them are trying to get their money back, which, with current depreciation, could be much more than the home is currently worth.
If you’re considering buying foreclosures in Santa Cruz as an investor or a homebuyer, I can help. Call me today at 831.662.6522 or email me at Lauren@LaurenSpencer.com or visit my website at www.MySantaCruzRealEstate.com for more information.