On a recent nation-wide survey conducted by RealtyTrac, a leading on-line marketplace for foreclosure properties, it was determined that foreclosed homes accounted for 26% of homes sold in 2010.  On a national average, these homes sold for 28% less than homes that were not foreclosed.  While TX (specifically the greater Houston area) has generally come out better, there are still a lot of great deals around.

Is a foreclosed home right for you?  First you must weigh in the risks.  More than likely you will be dealing with a bank or a division set up exclusively to handle their inventory.  Because we are speaking about a business and the fact that many people can be involved in the decision making process, it might take longer to get an initial response or negotiate the terms through the contract.  Also, you will absolutely need to get an inspection during the negotiated option/inspection period to determine if the home is in satisfactory condition to move forward or even qualify for a loan(speak to your lender about the various options available, including financing any needed repairs). When you get to this point, ALWAYS try to negotiate repairs with the bank!  Even though most are being sold 'as is', in many cases the bank will try to work with you to find a mutually satisfying resolution. A good inspection(all are not created equal) can run anywhere from $300+ depending on the size and specifics of the home.  You may even need to hire specific specialists for areas of concern which may include but are not limited to foundation, roof, termite or mold.  These items will be out of pocket even if you choose not to move forward, so if you know a contractor it could also be helpful to bring them out for a 'personal opinion'. 

While those are some of the worst cases, there are many homes in good condition with only cosmetic items to fix.  While these items can sometimes still be costly to fix, you will be able to work on them at a comfortable pace knowing they are under the terms of your loan.  One option is through a Harris County program that purchases the home, fixes it up to FHA standards and sells it for 20% LESS than what it was purchased at!  These homes go fast, so contact me on getting pre-qualified.

Your Realtor is the best asset for this information and will be able to let you know what similar non-distressed homes are going for as well as new homes.  While new homes may not compare in size, you will have the comfort of knowing they are up to the highest energy standards and also come with that highly appreciated home warranty.  Completed inventory homes offer the highest savings and builders are providing the largest discounts/incentives EVER! 

Still have questions?  Contact me at 281-777-7282 for a free consultation to determine the best home for your needs