Should You Buy A Brooklyn Foreclosure?

The deal you can get on a foreclosed property can be absolutely incredible! Here's an example. A nice young man in the market for his first place just recently purchased a bank owned (foreclosed) condo for almost $80,000 less then a similar condo went for two doors down. Its true, the condo he purchased needs about $40,000 in repairs such as new flooring and an update to the kitchen, but even still his property will be worth close to $40,000 more then he paid for it when the repairs are complete. Once the market turns around -and turn around it will- he stands to have even more equity in the apartment.

But is buying a foreclosure right for everyone? That's the question anyone considering buying one of the foreclosed properties in Brooklyn should ask himself. How do you answer that question? Well, here are a few additional questions to ask yourself so you can be sure that buying a foreclosure is something that will benefit you.

Can you afford to pay the transfer taxes and fees? - When you buy a bank owned property, they always require you to pay their transfer taxes and other fees. That can be as much as 5% on top of your asking price. Can you afford to pay the bank's closing costs as well as your own. That's something to take into consideration when you're thinking about buying a foreclosure.

Are you willing and able to pay for repairs? - Lets face it, most of the time there are repairs to be done to foreclosed properties. They can be as simple as painting or putting down new carpet, or as extensive as updating old plumbing (or replacing stolen plumbing) or putting on a new roof. Since a foreclosed property is sold "as is with no warranties" don't expect the bank to fix anything before they hand the keys over to you, and any problem you were not aware of that surfaces after you make the purchase is your responsibility to remedy and yours alone. NOTE: Having an inspection done by a licensed inspector before you sign a contract on a foreclosure is imperative. Don't buy "a pig in a poke".

Are you really as handy as you think? - I love watching the "This Old House" type shows that make home repair projects look so easy. But you have to ask yourself before you decide to lay the wood floors yourself to save money whether or not you're as handy as you think. I know I'm not, and I have pictures of a badly tiled kitchen floor to prove it. Don't buy a foreclosed property thinking that you can make many of the repairs yourself unless you're sure you can. Doing something badly and then paying to have it corrected can cost you twice as much money. Money you may not have.

Can you wait for repairs to be done before you move in? - Of course you don't own the property until you close, so none of the necessary repairs can start until then. Extensive repairs can take months. Can you carry two mortgages or pay rent and a mortgage while you wait for your new purchase to be ready to live in?

Do you want to live in a construction zone? - If you can't carry two mortgages, you might opt to move into your new home while the repairs are being done. I'm here to tell you from experience that there's nothing worse then living in a construction zone. The noise, the smells, the dust and debris, and all the disruptions to your life are difficult to live with. If you have small children or pets, it can be hazardous to them.

I hope the questions I've posed above have helped you decide whether or not buying a foreclosed property is right for you. If you have decided that it is, give me a call at 917-544-2662 or send me a message with the link below. You can also go to my website www.sellahomebrooklyn.com and sign-up for my Foreclosure List or email me.

However you decide to contact me, I'd be more then glad to help you find your Brooklyn New York dream home whether its a foreclosure or not.

Happy House Hunting