Can a Foreclosed Home Be a Good Buy?

by Isaac Benmergui Esq. on October 12, 2011

A foreclosed home might be a good buy, but there are some things you should consider about the locale before signing on the dotted line. In today’s depressed housing market, you need to plan on owning the home for no less than five years, and perhaps longer to get back your equity. Gone are the days of buying a home and fixing it up for a quick flip.

Driving around the neighborhood where you want to buy will tell you a lot about the health of the local economy. Are there many homes for sale or bank-owned properties? If you see more than a couple of signs, the area market could be especially depressed. If the market hasn’t rebounded by the time you’re ready to sell, you could be sitting on that home for a longer than you’d planned. Are any of the homes vacant or left unfinished by a builder? These are further indications of an unhealthy market.

Also drive through the nearest town and check for “going out of business” signs or vacant storefronts. Although a revitalization may occur, do you plan on staying in the area long enough to see it?

These are just a few of the considerations to may want to mull over before deciding to purchase a foreclosed home. The home may still be a good buy if it’s the right situation and price for you.

Getting Legal Help

The law offices of Isaac Benmergui can help you with your legal real estate needs; call 780-800-2510 or email Isaac@benmerguilaw.com for more information or to set up an appointment today.

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