Looking for a Deal? Foreclosure may not always be the way to go…

I love a deal, don't you?  I'm not simply talking about finding something cheap.  I'm talking about finding something of quality that will endure the test of time and hold and even increase its value.  It doesn't matter if it's a fine piece of furniture or a piece of real estate.  It needs to fit my criteria.

When working with buyers, my goal is always to find the best deal.  This doesn't always mean the cheapest price.  This is a really hard concept for buyers to understand.  You must look at the big picture and see where the true value comes into play. 

I'll give you an example.  Mr. and Mrs. Buyer are looking for a home in a certain price range and are considering only foreclosures.  Why? Because they feel these are the best deals out there.  Well, that's not necessarily true.  There are so many variables to consider when determining if the property is a good deal and understanding all these factors is imperative. 

If you are looking at this investment in the long-term (over 5 years), then it is wise to consider the following:

  1. Is the community seeing a disproportionate number of foreclosures?  If so, you'd better understand the consequences with regard to financing.  Fannie Mae is flagging declining markets and that home you think is a steal, your lender may think is a clunker!  It won't do you any good to invest in a community if your lender isn't on the same page.
  2. Is the home in need of serious updates or repairs?  Many foreclosures might be in disrepair and will require some serious investment of time, energy and resources to bring it up to par.  If you can get past the lender for approval, have you considered the cost and magnitude of what you are facing?  Roof, windows, siding, appliances, flooring, baths, plumbing, electrical, HVAC….these can be very high dollar ticket items.  Price your repairs before you make that offer.  Then understand that it will take you a considerable amount of time to recoup that investment in the form of appreciation of equity.  The more you spend to improve the home, the longer you may need to be there to see your equity increase, as well.
  3. Is the home on a bad lot?  Consider a gorgeous home.   It has everything you want inside – gourmet kitchen, beautiful flooring, lovely floor plan, even great schools.  But is the lot backing up to the train tracks or a 4 lane road with high traffic volume?  Is it on a main road that is destined to be widened?  There are a lot of things we can do to change or improve a home's condition.  We can even do significant landscaping to add privacy and curb appeal.  Recognize what you can change and what you can't before you invest in the property.
  4. Are there environmental factors to consider? As indicated above, noise pollution can contribute to the fact that a property doesn't sell.  So do things like water treatment facilities, airports, landfills, wetlands, etc.  You can find the perfect home on the perfect lot but If it backs up to a waste management facility, your summers may be spent indoors because of noxious smells! 

These are just some of the most obvious points to remember when you are considering purchasing a "DEAL" in real estate.  Remember to use an agent who will give you 100% fiduciary duty and always put your interests first. 

Irene Morales Ward is an experienced and exceptional Realtor® representing clients in the Northern Virginia area since 2001.  Irene's expertise in the field of agency and fair and honest client representation is recognized by her past clients' testimonials and is the driving force that continues to inspire her to exceed her clients' expectations.

Irene Morales Ward, Northern Virginia Real Estate

About Quantico Homes

Working primarily as a referral agent, my main motivation is to be able to provide you the highest possible level of service as you look to buy or sell your home in the Northern Virginia Real Estate market. You should be so impressed with your service that you will feel compelled to refer me to your family, friends and colleagues. Our time together is always well spent meeting your specific needs because my time and effort is not spent looking endlessly to generate more business. As a Buyer's Agent, the buyer's criteria becomes paramount during the home buying process. Your needs will never be compromised because Dual Agency is not something I participate in. This is a distinguishing characteristic from many in the industry and I stand firm in the belief that no client in a transaction (whether a buyer or a seller) should be without 100% representation. You deserve all the loyalty and attention from an agent who will always have only your best interests in mind. Keeping in mind that Northern Virginia is a highly transient area, I am always privvy to sales reports and market analysis of all the surrounding counties from Alexandria/Arlington to as far south as Richmond County and from east on the Potomac and Rappahannock Rivers to the Shenandoah (and all points in between!). Between the military, corporate, and government relocations, having an agent working to provide you with the latest statistical information and market trends is imperative to a successful sale or purchase. Also, as an e-Pro, finding you homes and communicating that to you becomes increasingly efficient, as does marketing properties for sale. Using exceptional photography for virtual tours, staging all listings, and incorporating "out of the box" methods to generate the largest number of buyer leads while Marketing Your Property For Sale, I can save you time, money and frustration. Start your search for homes at http://www.IreneMoralesWard.com!
This entry was posted in First Time Home Buyers, Foreclosures, Military Buyers and tagged , , , , , . Bookmark the permalink.

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