What Smart Buyers Know About Buying Santa Cruz Foreclosures

Posted by Lauren Spencer on Monday, April 27th, 2009 at 12:01pm.

Whether you’re looking for your next family home or an investment property, a foreclosure can be a great way to find a bargain. However, not all foreclosures are the same. Before you jump into a foreclosure, make yourself a smart buyer who knows a thing or two about Santa Cruz foreclosures.

1. Smart buyers know that that foreclosed properties are not automatically bargains. Banks want to make as much money as possible on their foreclosures. While you can sometimes find great deals, you are more likely to purchase a foreclosure for at or near market value. Look for Santa Cruz homes that are reasonably priced, not just those that are sold as cheaply as possible.

2. Smart buyers know that not all foreclosures are the same. Foreclosures fall into one of three groups. A pre-foreclosure happens when a homeowner stops paying their mortgage. Auction foreclosures and listed foreclosures occur after the bank has taken back complete ownership of the home. Assess your lifestyle and financial situation and choose the type of foreclosure that is best for you.

3. Smart buyers know that bargain foreclosures are not always what they seem. Rest assured, there’s a reason if a bank sells a foreclosure far below market value. These properties are often in need of significant repairs. Vacant homes are likely to have been vandalized, especially if they've been on the market for months. Sometimes homeowners facing foreclosure damage the home before they move. Include the cost of repairs with the asking price to determine if you can afford the home.

4. Smart buyers know that buying a foreclosure takes time. Buying a foreclosure is not a quick process, especially if the homeowner is still living in the home. The bank has to file documents with the local court and requires the buyer to complete stacks of paperwork that protects the bank. Know how long you can wait before moving in and give yourself plenty of time.

If you’re looking for a new home, a foreclosure might be the right home for you. I can help you find Santa Cruz foreclosures that are right for you. Call me today at 831.662.6522 or email me at lauren@laurenspencer.com

LINKS:

1. market value

2. Auction foreclosures

3. Repairs

About Lauren Spencer

Award-Winning Santa Cruz REALTOR®

Lauren Spencer is your local real estate expert, specializing in Santa Cruz real estate and surrounding communities—this is where she lives, works, and plays too. Let her know your questions about the community and county and she'll be happy to fill you in on all you want to know! Lauren Spencer has consistently been voted best local REALTOR in Santa Cruz and is always happy to offer her advice and expertise. Call her at: 800.226.4717.

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