Foreclosed homes (Houston, Austin, Georgetown: real estate, foreclosures, rental)

[MarknEurope]

I was looking at realtor listings this week and noticed several homes that I came across said, 'Must sell- Home foreclosure." It lead me to Google, "Austin, Tx foreclosed homes" and see what would come up. Well....

There are a ton of homes listed below market value! I'm curious what the negatives might be from buying a used home on here if you were able to obtain inspection? The one thing I have going for me is that a close friend of mine is a realtor in Austin... so I'm sure she would help with the process if this is legit.

Curious to hear what some of the others out there think about this. (realestate agents lurking on this forum- be objective- we know you live on commission)

http://www.foreclosurefreesearch.com...ByColumn=city#

[Trainwreck20]

Foreclosed homes have several potential drawbacks, but without knowing the specifics, I can't say whether they apply:

• No. 1 issue is damage. A home that has been foreclosed on has often been incredibly mistreated. Holes in the walls, stained or torn carpets, animal excrement, missing light fixtures, rodents/fleas in the house/attic, etc.
• Possible that the house was poorly constructed. Many of the foreclosed homes were cheap to begin with and have very cheap construction. Wiring may be bad, roofs leak, materials are generally cheap and wear out/break easily.
• Some of these homes may be HUD homes, although there are not as many as there used to be. I think you need to qualify somehow to buy the foreclosed HUD homes, but I don't know the specifics

These homes can be a good deal, depending on what your 'handyman' abilities are. My brohter-in-law bought a foreclosed home in Houston many years ago and fixed it up and made a very tidy sum. Then he did it again. However, he works from the house and could do little bits here and there, and even after he had made the house 'livable', it wasn't exactly a nice or fancy house.

[MarknEurope]

Agreed. However, I think the first two points you covered would most likely be non-existent when looking at some of the areas that the listed homes/communities are in.

It certainly makes an interesting option if you could view them beforehand.

[GKiter]

Speaking as an agent who took a coarse in buying foreclosure/HUD homes, just make sure that you really do your research and get an inspector who really knows his business. First thing I would do is contact your friend who is an agent to help you. Perhaps she might know an experienced agent who deals specifically with these types of homes/projects as they are a huge untaking despite what HGTV "Flip this House" shows you.

[Trainwreck20]

Originally Posted by MarknEurope

Agreed. However, I think the first two points you covered would most likely be non-existent when looking at some of the areas that the listed homes/communities are in.

You would think....however, my dad owner a rental property in a very nice area, and you would be amazed at the damage done in a very short period of time, and then the tenants disappear in the middle of the night (literally). The house was in a very nice neighborhood in Georgetown, so it was definitely abnormal, but you never know without looking.

Also, check the age of the house (you can find it on the tax assessors site). Any houses in the 80s or early 90s might be suspect, depending on who built them. Actually, that is true for some of the 70s houses, too. The building boom in the 80s resulted in some very shoddy construction.

[MarknEurope]

Originally Posted by Trainwreck20

and then the tenants disappear in the middle of the night (literally). The house was in a very nice neighborhood in Georgetown, so it was definitely abnormal, but you never know without looking.

You know they say it isn't money that seperates people, but the 'class factor.'

[austin-steve]

Most of the foreclosures in Austin are in areas that were oversold to investors and first-time buyers. Many, if not most foreclosures are also now sold through the MLS at or near market value. The nice ones I've seen in the MLS and tried to help buyers purchase actually sold for full market value. In the outskirt areas, you might pick one up a bit below market value, but appreciation is flat in those areas so I wouldn't want to own a home there no matter the price.

realestate agents lurking on this forum- be objective- we know you live on commission

I'm insulted. What's that supposed to mean? What stereotypes do you hold about real estate agents and what we do? Maybe some of us can help straighten you out.

I've made a decision to fight back when I see comments like this because I don't think people who make them have the slightest idea what good agents really do or why we do it. Commissions are not why most of us are in the real estate business.

[lindaluck]

I agree Austin-Steve, that is below the belt! If people think there is a better way in which real estate professionals should be paid-say so. If you paid them by the hour it would cost you much more than they get now. I don't think bashing anyones profession is appropriate in this forum.
Now for forclosures. Some of the best deals are foreclosures and unlike the comment about them being sub-standard, NOT TRUE! Both houses I have bought in the last 10 years have been forclosures. One was a hud. They are good investments if you know what your doing. I would be leary if you come into a subdivision where there are lots of foreclosures. That could be a signal that something is wrong (like flooding). That is when I consult my Realtor about the area, and would not even consider buying real estate without a professional Realtor.

[lindaluck]

Originally Posted by MarknEurope

You know they say it isn't money that seperates people, but the 'class factor.'

Oh really Mark? Some of the worst tenents I have had have been of what most would consider "upper class". You are very mistaken. Bad things happen to good people who loose their houses and all indications are that there will be many foreclosures. People loose their jobs,their lives, and we are at war you know.

You have made some terrible assuptions!!!

[Trainwreck20]

I think he means whether people have 'class' or not, not what social class they are in. In fact, I think you are both saying the exact same thing . It isn't money (or lack of) that makes a good tenet, it is more whether they respect someones property.