What is a foreclosure?
Foreclosure. A daunting word for some homebuyers. There are some stigmas and negative connotations that come along with purchasing a home that is a foreclosure, but we are here to tell you that there are many benefits to these properties in Myrtle Beach. Let’s first start by talking about what a foreclosure is. A foreclosure is a home that is bank owned, but that once belonged to a homeowner who either voluntarily transferred the deed to the home to the bank or abandoned the home. While there are some extra steps and possible setbacks that go into purchasing a foreclosure home, there are many benefits that come along with it as well. We hope this post sheds a little light on the subject of foreclosures for those of you who are thinking of purchasing one to help you make the right decision for you and your family.
What are the pros of purchasing a foreclosure in Myrtle Beach?
There are a few reasons why purchasing a foreclosure in Myrtle Beach is a good idea. For one, it is a good deal. If the bank owns the property, chances are they are looking to get it off their books pretty quick. This works to your benefit because there is a high probability that they will price the home lower than normal in hopes to get multiple offers on the table. Also, if the bank owns the property, most likely any debts or leans on the property, as well as any issues, will most likely be cleared. And if the home is badly distressed there is a chance, in addition to your primary means of financing the house, that it can qualify for a home rehabilitation loan package. This can prove to be a huge relief (and take a little pressure off your back) if major issues with the property arise and you do not have the funds to cover the maintenance.
Another great reason (honestly one of the main reasons) to purchase a foreclosure is the equity the home has the potential to accumulate from buying it at a lower price. Whether you take time and money to make repairs and upgrades to the home or just have patience as the area continues to develop, you are putting yourself in a good position when you purchase a home under the market value. If you are doing upgrades to the home, you also have the opportunity to create the home of your dreams with customized finishes that are tailored around your taste and preference. It is also good to note that you have the potential to find a home that is move-in ready. What a win-win that would be! There will more than likely be other buyers that are interested and will compete for the property, but if you are the lucky ones to snag it, you have hit the real estate jackpot!
Time is another great aspect when it comes to foreclosure properties in that the banks can take a little bit longer to make a decision. And because the house is vacant, viewings that would normally have to be set and coordinated around a strict schedule can be done at your convenience. Bring an engineer if needed and do your inspections if you are able to. This will help you be better prepared when it comes to making the final decision on whether to go ahead with purchasing the property or not. And if you do decide to move forward with the property, the extra time it may take for all the paperwork to go through can be used to complete all the things you need to do before the property is closed on. While some may view this time as wasteful and a negative aspect of a foreclosure, we urge you to flip your frame of mind and see it as an incredible opportunity to get your ducks in a row and ensure all your “I’s” are dotted and “T’s” are crossed.
Our next pro when it comes to purchasing a foreclosure is a pretty obvious one if you plan on financing the home – a lower mortgage payment each month. Purchasing a property that is below your set budget will, in turn,n make your mortgage payment lower, and allow you to have more cash on hand each month. Purchasing a foreclosure also gives people a chance to purchase a home in a desirable neighborhood that they may not have otherwise had the chance to live in. How incredible would it be to live in your dream neighborhood without paying the incredibly high prices? Properties that are in foreclosure are usually distressed and can be found anywhere, in all ranges of condition and price point. You may also be able to get a bigger house for the budget you have set.
What are the cons of purchasing a foreclosure in Myrtle Beach?
As with most all decisions, with the good comes the potential for some bad. It is important to see both sides to ensure you are making the right decision for you and your family. A potential con that can come along with purchasing a foreclosure includes overdue home repairs and properties that are in poor condition. Not everyone is looking to fix up a home, and if you are looking for a move-in ready property, a foreclosure may not always be your best avenue. In most cases, there are repairs that need to take place in order for the home to be up to par as some of the properties may not have been lived in for some time. Buyers may find things such as broken pipes, bug infestations, and mold buildup. While taking on these repairs is not a complete deal-breaker, it is definitely something to consider.
Another item to consider when purchasing a foreclosure in Myrtle Beach is that there are no guarantees. The process of purchasing a home that is under foreclosure has the potential to be a long and frustrating process, with slow response times and extra paperwork. And we spoke about earlier, while some people may see this as a con, it is also a great time to ensure you have everything in line and allows you to take your time without rushing. Competition is another thing to consider when going to purchase a foreclosed property. There are a lot of people that see the value in these homes, such as the potential to customize it and more square footage. Therefore, naturally, there will more than likely be other bids for the property that can create a little competition with your offer. This is not a bad thing, it is important to just stay patient.
Can foreclosures be a good investment property?
Absolutely! If you have the time, money and patience to take on any construction, improvements, and upgrades that can come with a foreclosure, then these properties are ideal for you. Foreclosure properties, whether for a rehab project or income property, set you up for a win due to being able to purchase the home at a low cost and sell or rent at a higher price. You can put all the top-notch finishes on the house and give yourself a competitive advantage at other homes in the area with a lower barrier to entry in the world of investment properties in Myrtle Beach.
What should I do if I am interested in purchasing a foreclosure in Myrtle Beach?
Give us a call today! We know you have many questions around foreclosure properties and we have the answers. We have helped numerous people get into homes that were under foreclosure and we can do it for you as well. Let our experienced team help you walk through the process of purchasing a foreclosure in Myrtle Beach and find your dream home today!
You have questions, we have answers. Give us a call at 843-839-9870
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