To some people, the idea of buying a foreclosure home means getting a good deal on a move-in condition model home. To others, foreclosures equal trouble. At least that's according to a recent survey conducted by the real estate search site www.Trulia.com.
According to Trulia.com, about half of buyers are open to looking at foreclosures, but a full two-thirds felt there were "negative aspects" related to such a purchase, including hidden costs, the possibility of declining value, and other unknown costly risks.
The survey specifically showed:
60%of single/never married adults are more likely to consider purchasing a foreclosure versus 50% of married, divorced, or separated adults
57% of males are more likely to purchase a foreclosure in comparison to 51% of females
69% of younger adults (18-34) are likely to purchase a foreclosed in comparison to just 32% of adults 55 and older
And on the emotional side, 20% of adults said that having a personal connection with someone who lost their home to foreclosure is a negative aspect of purchasing a foreclosed home
So here's proof that not every homebuyer gets bright-eyed and bushy-tailed when it comes to buying a foreclosure. However, in the Northern Virginia area, the lower priced foreclosure home gives many buyers the opportunity to enter the market. And often in a subdivision that was previously not affordable at the height of the market, or even in a normal market.
With first-time buyers, the worry of hidden defects from a bank-owned home that has been sitting vacant through the different seasons is not too appealing. Vacant homes often have odors that can indicate possible defects. For example, the smell of pet odor could mean that there are some areas that need to be cleaned better than others. Also, the 'wet' smell could send up a red flag for possible moisture damage that's yet to be seen in addition, to mold. Is there an active leak on the inside of the home, or is the home not properly sealed?
The dreaded "AS-IS" when noted in the listing remarks could also be enough for the browsing buyer to click the 'Next' button. And what about those barely finished new subdivisions that have more foreclosures than seller-owned resales? What type of signal does that send to the browsing buyer? Should they be overly concerned with vandalism and break-ins?
Buyers have to consider quite a bit when looking at foreclosure homes. In some instances, the possibilities and unknowns of foreclosures are enough to attract buyers to the seller-owned homes. Sometimes, greater value is perceived when a buyer can see that a home shows pride of ownership and has been well taken care of.