Is It Time to Buy a Foreclosure In Hartford County? And How To Avoid a Lemon
February 21st, 2008 categories: Home Buyers
There are many signs that the foreclosure market in Hartford County is alive and well. There aren’t that many on the market. In Hartford county, there are less than 50 active listings for foreclosed single family homes. Only a few more than 100 have sold in the last 6 months.They are selling for close to asking price - the median list-to-sell price ratio is 97%.
They are selling quickly -the median days on market is 22. That is faster than the median for typical resales.
Why are there so few foreclosures and why are they going so fast?
Investors, novice and experienced, think it’s a good time to buy properties in distress.
Sellers in trouble are trying to sell their homes by negotiating a short sale so there are fewer actual foreclosures. There are many more homes for sale now with the description, “short sale,” “subject to lien-holder approval,” or “subject to lender approval.”
How to Avoid Picking a Lemon
Get an inspection.
It may be sold “as is” but you can and should get an inspection. The only catch is that the bank or lien-holder probably won’t be interested in making repairs or offering you any credits.
Read through the addenda carefully.
Each lender has a different addendum to the contract, basically to tell you how many different ways they are not responsible for anything wrong with the property. It may also detail verbiage that must be in your contract, expedited deadlines for inspections and financing requirements.
Know what type of deed you are getting and the implications.
Warranty or quitclaim? It’s probably a quitclaim deed so talk to your attorney about what this will mean for future sales.
Beware “Time is of the essence.”
This clause may appear in your addendum, which essentially means that you could be in violation of your contract if you don’t close right on time or meet other deadlines. This term is generally not used in real estate contracts in CT so it may be unfamiliar to you.
Don’t Assume It’s a Deal.
Do your homework - check comparable sales prices, look at the trend for the area (are homes selling or are sellers forced to discount), look into the neighborhood, and bring along a second set of eyes before you write an offer, such as your trusted Realtor, a contractor or an experienced homeowner who may be able to pinpoint some repairs.
