Since the housing collapse of 2007 many home buyers as well as investors have snatched up great deals on foreclosed properties. Now that the housing collapse is over, we are finally starting to get back to some form of normalcy. Unfortunately many foreclosures are STILL on the market which may lead some potential home buyers to believe that there are still great deals to be had. Reality television programs such as seen on HGTV may also be perpetuating the belief that foreclosed homes are great deals. From a home inspectors perspective, this could not be further from the truth!
The painful truth is that foreclosed homes that are in good shape, (just needing cosmetics), are already gone. Most get sold before they even hit the market. As a general rule of thumb in TODAYS (2015) real estate market, if the home has been on the market longer than 6 months, rest assured there are some major issues with it. Todays homes are selling in a matter of weeks and homes that are in good condition are going in just a matter of days. What is left behind is typically the bottom of the barrel. So if you are in the market to buy a new home, think long and hard before placing an offer on a foreclosed home and pay particular attention to how long the home has been on the market. If it has been on the market for longer than 6 months, save yourself the headache and continue looking.
Just something to keep in mind as you search for your new home, and whatever you do, do not skimp on the home inspection!