Investing in Charlottesville Short Sales and Foreclosures is Easy

The recent economic climate is providing awesome opportunities for savvy investors. Right now there is an ample supply of empty, under-priced and foreclosure listings of properties in nearly every city in the United States. These properties are available at every price level and in every condition.

Real estate markets will go in cycles. Right now we are really seeing the downward cycle and many foreclosure listings but this trend will sooner or later reverse and the prices will start to rise again. It’s inevitable. If you follow the investors maxim of “buy low, sell high” then now is the time to buy homes and foreclosure listings because prices are so low.

There are a few ways to purchase these under-priced properties and foreclosure listings. Right now there are homeowners who are essentially “upside-down” on their mortgage. In a pre-foreclosure sale a lender will allow a homeowner who is delinquent on their payments to sell the home and pay the proceeds back to the lender. If the home will only sell at a price that is less than what the homeowner owes on the note the case is called a “short sale”. There are many short sale opportunities available right now. Look at your local MLS or contact a realtor.

Another thing you can do to find great deals in foreclosure listings is to look for foreclosure auctions. The foreclosure auction is most often held at the local courthouse of the county of the property. Just like any auction the property is taken by the highest bidder. Usually the price you can get these foreclosure listings at is very reasonable as there are not often many bidders. The homes are sold “as is” though so be aware that you may have to pay for some repairs before selling or renting the property.

If the bank has to take the home back into foreclosure they will want to get the property off of their books as soon as possible. Therefore they are often very motivated and will lower the price on these foreclosure listings until they are gone. Most often they will use a realtor so check your local MLS. Occasionally they will do some repairs but sometimes they will sell the property “as is”. Do your due diligence inspections before you purchase.

Unlike the stock market when you buy real estate no matter what happens to the economy you will still have the property and it will still have some value. Real estate will never lose all of its value and the value will eventually go back up. People will always need a place to live. Because of this, real estate and especially foreclosure listings can be a savvy investment in these uncertain economic times.

When you invest in foreclosure listings, it is crucial to make sure that you do all of the same inspections and due diligence that you would do if you were purchasing the property to live in. You will be responsible for any repairs. It is also important to have your funds in order be it cash or bank financing.

But now is an an opportune time to invest in real estate and foreclosure listings in almost any market in the United States because the prices are low and the opportunity for profit is very good.

Rob Alley, Realtor
The Avery Group at Roy Wheeler
540-250-3275
roballey@roywheeler.com
http://www.robsellscharlottesville.com
http://www.forestlakesliving.com
http://www.theaverygroup.com