This week I had the opportunity to work with a buyer who wanted to buy a real estate foreclosure. He's heard all of the stories of buying $400,000 homes for $50,000. Although we didn't find these deals we did find 12 homes at substanially reduced prices. Before we headed out to view these 12 homes, my client got on the phone to call his wife to give her the exciting news. Before we headed out I tried to give him a reality story but he didn't want to hear it, so we headed out to view the 12 homes. After viewing the first 5 my client buyer started to get depressed. His vision of finding a great deal became a vision of buying a money pit. He couldn't understand why these homes appeared to be so nice on the outside were money pits on the inside.
Every home we looked at had visual structural issues. All 5 of the first homes we viewed and 10 out of the 12 homes in all had major visual foundation issues. In fact, 5 homes had cracks so big that we could put our hands in them. A couple homes slanted really bad and a few felt like we were in a fun house. Other observations by my client included many mechanical issues, mold, broken windows and broken water pipes. These were observations from homes in nice areas of Johnson County that looked great from the street.
When I explained to him why they had structural issues, he commented that he understood. First, if a homeowner is having a hard time paying their mortgage, will they be taking care of the home. Deferred maintenance such as clogged gutters, peeling paint, holes in siding and voids around the foundation will cause problems if not corrected. Now had to this a sump that has been turned off for a year or more and the foundation has had alot of extra pressure on it for a long time.
After getting my client redirected we found a great home at an incredible price that does not require structural repairs. All it needs is some redecorating.
If you would like some help finding a home at a great price, contact the Dowell Taggart Team.
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