NBC12 News, Weather Sports, Traffic, and Programming Guide for Richmond, VA | Foreclosures offer opportunities for cautious buyers

Foreclosures offer opportunities for cautious buyers

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By Ryan Nobles - bio | email

RICHMOND, VA (NBC12) - New numbers released show more foreclosures on the market in Virginia. While the idea of purchasing a home that generally goes for a cheaper price sounds enticing, it does have its risks.

According to the agency, Realty-Trac, Virginia foreclosures are up 121 percent since this time last year.

But, before you run out in search of a great deal, take a deep breath, and do your homework.

In any market, the goal is to buy low and to sell high. It is low prices that make foreclosures attractive opportunities for perspective home buyers. But focusing on a low price, may keep someone from ignoring glaring issues.

"It can be very complicated process, there are lots of forms that are involved there are typically not required in traditional contracts," says Phil Victor of Twin Tier Properties.

That complicated process means that potential buyers should not expect to swoop in and pick a bargain off of the market.

"Buying a foreclosed home does require a bit of research," says Victor. "You can't just drive around town looking for them because foreclosed homes, like this one on Garland Avenue, don't have signs out front."

Instead buyers are drawn to websites filled potential bargains. Bargains that still require some work before they become right deal for you.

"If the numbers make sense, being patient, over time you will find the right property," says Victor.

Victor from Top Tier Properties says that many potential clients looking for a foreclosure are in search of a quick deal. But closing a deal quickly, still has to include patience.

"I think a lot of the problems that exist today are because people jumped into fast especially when it comes to investment properties or even when it comes to buying foreclosed properties," says Victor.

But, taking the time to wait and spring for the right house, at the right time, could lead to getting a great house, at a price way below market value.

Many foreclosed homes are sold "as is" meaning if you find a problem after you take control of the property you are out of luck. Victor says, when buying a foreclosure, you should consult an attorney and a real estate agent.

And the U.S. Department of Housing and Urban Development, which deals with many foreclosures, has a website that outlines all the homes they have available under foreclosure, click here.  

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