When To Consider Buying A Foreclosure In Athens

You’ve seen those TV shows – Property WarsFlip or Flop, and others of that ilk. And because of their huge popularity, there’s now a burgeoning interest in buying foreclosed homes. It’s a great way to buy a house on the cheap for investment purposes, right? It can be, but it can also be a financial disaster. You have to know how and when to consider buying a foreclosure in Athens.

Foreclosure Overview

Foreclosure is what happens when a homeowner stops making mortgage payments. When that happens, the lender has the option to seize the home and initiate the foreclosure process – because the home is the collateral for the loan. In some states, foreclosure can be completed in just a few months, but in other states it can drag on for years.

There are basically two types of foreclosed homes. These are bank-owned homes and real estate owned (REO) properties. In both cases, the property is owned by the lender, and the difference lies in the particular stage of the foreclosure process the property is in. The chief difference is that REO properties are further along in the process, having already gone to auction and remained unsold. 

How to Know When the Time is Right

The time to consider buying a foreclosure in Athens is when you are prepared to:

MAKE REPAIRS

Banks and other lenders are in business to lend and make money, not maintain homes. So they don’t do any maintenance on or make repairs to foreclosed homes. That means that many if not most of these homes are suffering from some degree of disrepair and deterioration.

Foreclosed homes, then, are sold as-is, and you will have to make the needed repairs. You should have an inspection done, and that may provide some negotiating leverage – but only if there are no other, higher offers. Not all foreclosed properties need repairs, but most do.

WAIT

Buying a foreclosure in Athens almost always means a good deal of waiting at some point. Typically, it takes longer to buy a foreclosed property than it does to buy a home through the traditional route.

First, you’ll have to slog through all the offer and counteroffer back and forth. And when the bank does accept your offer, you’ll have to wait again. A bank’s asset manager will usually have a work backlog, and that slows everything down. You can expect more than the usual 30 to45 days to close typical of buying a home in a traditional sale transaction.

DO YOUR HOMEWORK

When buying a foreclosure in Athens, you can’t just assume that it’s selling at below market value. That’s not always the case, so you have to do your homework. Understandably, lenders want to get back as much of their money as possible, and because of that they sometimes try to sell a property at a price above its worth.

To make sure you’re not being taken, you should have your agent run a comparative market analysis (CMA) to see what comparable homes in the area have sold and are selling for. A good agent will factor in and allow for the needed repairs, including the cost of materials and labor. If you have the experience, you can do this yourself, but it’s best to have your agent do it. (Find out more about CMAs at 706-426-1082.)

Contain the Risk

Buying a foreclosure in Athens can indeed be a good deal – a house to live in acquired on the cheap or a profit-generating investment property. But the fact remains that there’s always some risk involved. You can, however, contain and limit that risk if you lean on the expertise of your local agent, especially one with experience in and knowledge of foreclosed properties. Our agents have the needed expertise and are ready to assist you.

Contact us if you are thinking about buying a foreclosure in Athens! We are happy to answer all of your questions! 706-426-1082

Georgui Kassaev

Georgui Kassaev was invited to this country in 1996 during the Atlanta Olympic games. The first place he came to call his home after leaving Russia and performing all over Mexico, was Athens. He became a professional mixed martial arts fighter, then coach, and eventually obtained two black belts in taekwondo and Brazilian jiu-jitsu. He formed a specialty carpentry and construction business which sparked his passion for real estate. He then rediscovered his first passion performing. After all, he has performed in the circus since he was eleven years old in front of thousands of people and then again when he was an adult as a professional fighter. In 2018 he landed his first 3 television roles. While acting, he continued developing his real estate skills, becoming a value-add investor in the Classic City and then getting his real estate license. He has now become a listing specialist in the Greater Athens Area, working with homeowners to protect their interests and get them the right price for their property! However, he never abandoned his construction roots and works with investor clients to help them buy properties based on their numbers with no aversion to making multiple offers. Georgui is fluent in three languages Russian, Spanish, and English. He is proficient in video production and social media marketing.

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