Bank Owned Foreclosures: Getting Around The "as Is" Problem
Homebuyers often prefer bank owned foreclosures because of their affordable prices
. However, these properties can cost even more than a regular or a new home if the repairs needed are way beyond the usual wear and tear. People who are considering purchasing such properties should be aware that there are areas of a residential structure that require much money to repair and might not be worth all the trouble.
Foundations and Home Plan
When looking at "as is" homes, the first thing that a buyer should concern himself with is the condition of the foundation or the framework. The four corners of a dwelling, particularly the beams that keep the home upright, should be in sturdy condition. There are pests that could eat their way through the sturdiest of foundations and cause them to rot and fall apart. Homebuyers should remember that replacing a home's foundation is as good as building a new house from scratch.
Those who are interested in buying bank owned foreclosures should also consider the dwelling's design plan. A house that is poorly designed or have rooms and structures that get in the way of space might cost more to renovate. If a buyer plans to knock out dividers to create larger spaces, he should be able to achieve it just by removing such dividers. If creating a more open space entails realigning most of the rooms or removing them altogether, then it will cost more and might not be even worth all the trouble.
Roofing and Ceilings
A house with worn down roofs and ceilings will also cost a lot to replace. The bigger the house, the more expensive it will be to replace its roof. If a buyer needed to strip at least 50% of the roofing and replace it with a new one, then the expense will likely be higher than the price paid for the house. In such cases, it might be better to look at another home.
Although bank owned foreclosures are sold at very low prices, the cost of repairs that some of these dwellings require might bring the total cost to a price that is higher than the purchase price of a new house that is in good condition.
by: Joseph B. Smith
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