FORECLOSURE TRENDS

It's a nice surprise, I have been in many foreclosure homes recently that still have the heat and the electricity on. It's much more enjoyable to look at homes that are warm and have lights. Equally or more nice is the agressive pricing, even low pricing that I've seen on some foreclosures lately as banks are looking to just reduce their inventory.

When you buy a home, you want to have the home inspected. It's really not possible to do an inspection if the utilities are off and many banks refuse to pay the costs of "de-winterizing" and "re-winterizing" a home in a foreclosure or bank-owned scenario. So, as a buyer you need to ensure that you write in the PA contract that the bank will have the home de-winterized prior to your inspection.

Additionally, I've seen some tremendous deals lately. Large lake-front homes in the metro area for $500,000 or even less and moderate homes in suburban neighborhoods with steel siding, vinyl windows just needing paint and perhaps carpet for $135K. Some of these sell in multiple offers so you have to be careful when drafting your purchase agreement. For you e-Bay-ers out there, it's almost like sniping. If a home is underpriced, which some of these foreclosures are, you have to be willing to think creatively and offer $7K or maybe $8,650 over the asking price...

Interesting times I tell you. There'll be many people in 1-2 years who wish more than anything that they hadn't waited to buy a home -- low interest rates and tremendous deals. An interesting combination for those bold enough to buy. Sales are up and inventory is down in the Twin City area so some people are getting it.

What are you waiting for?