(Including the San Antonio Metro Area)
View all current forclosure and short sale listings at the links above or build your own foreclosure search at our custom foreclosure search page
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As with many real estate related questions, the answer, well, "depends..."
On average, a distressed property may sell for about 30 percent less than a comparable non-distressed property. While that percentage is enticing, it pays to consider the hidden costs that may take a bite out of that otherwise substantial margin.
While an investor can expect a foreclosure sale to close more quickly than a short sale (due to more flexibility in negotiating closing costs), one source puts the national average of bringing a foreclosure up to marketing conditions at 5-10% of the purchase price. Add to that the expenditure of sweat and stress equity and the importance of carefully guarding that 30% margin comes into play. That said, what are some of the pitfalls that can swallow the margin and turn that potential investment into a money pit?
Damage: Versus houses that are sold in short sale scenarios, those sold in foreclosure are much more likely to be damaged. The damage can range from scarred walls, damaged appliances and fixtures, to unusable flooring. Additionally, the absence of utility connections can harm plumbing over time. Additionally, foreclosures purchased at auction may never afford the bidder the opportunity to even look at the property, possibly leaving the winner to deal with such major issues as foundation damage and/or obligations to pay off existing liens on the property. The upshot? Due diligence and research can reveal foreclosure nightmares or diamonds in the rough.
The perils of the foreclosure purchase actually cast a better light on the often lengthy short sale purchase. Generally, short sale properties are owner occupied and as such, are better cared for than foreclosure property. That said, there is the lengthy time to close versus a foreclosure sale due to a three way interaction between the owner/lenders (yes there may be multiple liens)/buyer...all must agree on the terms of the sale.
Bottom line: the aspiring distressed property buyer must gauge risk tolerance, handyman abilities, patience, and instinct when pursuing a foreclosure or short sale.
The data relating to real estate for sale on this website comes in part from the Internet Data Exchange (IDX) of the Central Hill Country Board of REALTORS® Multiple Listing Service (CHCBRMLS). The CHCBR IDX logo indicates listings of other real estate firms that are identified in the detailed listing information. The information being provided is for consumers' personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. Information herein is deemed reliable but not guaranteed, representations are approximate, individual verifications are recommended. Copyright 2017 Central Hill Country Board of REALTORS®. All rights reserved.