A Buyer's Market: Know Your Foreclosures | Real Estate Startups

New City, N.Y. (PRWEB) February 01, 2012

Currently, foreclosed properties are on the rise. A complicated foreclosure market can provide ample opportunity for educated buyers, or leave room for devastating financial flops when a property is purchased without a thorough home inspection or sufficient knowledge.

While some foreclosed homes can be a real steal, make sure to do your homework first, says Matthew Rand, Managing Partner of Better Homes and Gardens Rand Realty.

When looking at foreclosed properties, buyers should be aware of three different types of foreclosures, and the risks or benefits that come with each.

Real Estate Owned (REO). These homes have been foreclosed and are now owned by the bank. They have often stood vacant for some time and typically have maintenance problems due to neglect, so buyers should be extra cautious.

REO properties are often sold as is, leaving the buyer some wiggle room to request a price reduction based on needed maintenance. If you have the finances, time, and energy for a fixer-upper, REO properties can be a great investment, Rand notes.

Short-sales. These are pre-foreclosed properties that are typically being sold at a lower price so that the seller doesnt have to foreclose. Designed to create an ideal situation for all involved parties, short-sales can offer great deals for the seller, buyer and bank.

If you are looking into a short-sale property, be sure you are pre-approved for a loan, cautions Rand. Also, make sure to have a solid home inspection done.

Auctions. An auctioned home is one of the riskier types of foreclosed property purchases, as he buyer often has a limited window of time to view the property, and no opportunity for a proper home inspection.

These as-is properties can be a great deal for the seasoned real estate investor who knows what to look for. If youre new to the field, purchasing a foreclosed home at an auction could be devastating financially when major unseen problems arise, warns Rand.

For more information on purchasing foreclosed properties, please contact Better Homes and Gardens Rand Realty at media@randrealty.com.

ABOUT BETTER HOMES AND GARDENS RAND REALTY

Better Homes and Gardens Real Estate ? Rand Realty, founded in 1984, is the No. 1 real estate brokerage in the Greater Hudson Valley with 27 offices serving Westchester, Rockland, Orange, Putnam and Dutchess counties in New York and Passaic and Bergen counties in New Jersey. Rand has more than 800 sales associates, as well as a commercial real estate company (Rand Commercial Services), new york mortgage company (Rand Mortgage), title company (Hudson Abstract Services) and New York insurance agency (The Hudson Group Insurance Agency). Rand Realty is also on Facebook and Twitter.

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Tags: Foreclosures, Matthew Rand, Buyers

Source: http://realestatestartups.com/2012/02/a-buyers-market-know-your-foreclosures/

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