Colorado Real Estate News - Denver Colorado Homes for Sale
Quality local news and information from professional Colorado real estate brokers who know their stuff. Local real estate news, information and listings for Colorado, authored by Denver real estate company Legacy Real Estate Brokers, Inc. and edited by RISMedia.Denver Colorado Foreclosure Market 2007: One person’s lost is another’s dream home?
Denver Colorado Foreclosure Market 2007: One person’s lost is another’s dream home?
It is definitely a buyer’s market during one of the biggest foreclosure markets in Colorado’s real estate history. At the same time buyer’s must make sure they know what they are getting into when contemplating the purchase of a foreclosure property. There are many aspects to consider when buying a foreclosure to help insure you make the right investment decision. Is the property in fundamentally sound shape in terms of the basic structure? Are the items which are the most expensive to repair in good condition? Things like the roof, furnace and plumbing could be very expensive to replace and need to be inspected to verify there current condition. At Legacy Real Estate Brokers Inc. we would like to offer our over twenty years of real estate expertise to help our clients understand and successfully navigate through the often complex issues associated with purchasing a foreclosure or bank owned property.
First let’s discuss the most common reason for foreclosures in Colorado, which are risky mortgage packages improperly sold to often unqualified home buyers. The use of mortgages like ARM (Adjustable Rate Mortgage) products was a big factor in the large increase in foreclosed properties in Colorado. Initially the rate and payments seem attractive until the interest rate market fluctuates and the home owner cannot afford the often large increase in monthly payments. These factors along with several others have put Colorado on track to log more than 37,000 foreclosures in 2007 which would be a thirty percent increase over last year according to the Colorado Division of Housing.
While so many people have been forced to foreclose on their home, buyers and investors have unearthed a gold mine with potentially huge investment win falls. HUD homes and fixer uppers once thought of as distressed properties have been redefined as one of this decade’s most feasible solutions for new homeownership with a vast array of investment opportunities. The real estate market is being inundated with houses people can now afford and investors can refurbish and sell for top dollar in most cases. These fix up foreclosure properties whether single family, townhouses or condominiums are often cheaper than comparable homes in the same neighborhood. Homebuyers and investors can walk in on thousands of dollars of built-in equity if they do there homework and work with a real estate professional like those available at Legacy Real Estate Brokers Inc.
One factor to be aware of is the new owner must incur the expense of any necessary repairs, and those can be numerous and expensive. Buyers must be honest about how much repairs might cost and be prepared for them. There also may be some hidden repairs that can not be seen on the outside which should be considered. Housing experts advise that it is paramount to have these properties inspected before the closing so that buyers know exactly what they are getting into. A foreclosed house left vacant for months can develop unforeseen plumbing problems, for instance. It’s also common to uncover damage to the roof, foundation, electrical wiring, water heater or furnace - expenses that could easily cost $20,000 to $30,000.
In addition previous owners often take out their anger and disappointment over the foreclosure situation and purposely damage their property. One home we at Legacy Real Estate Brokers Inc. viewed recently had an actual check list on the wall. They were to take the furnace, hot water tank, and the toilets. On top of that they poisoned the trees and grass around the home. Animals were left on the property and did not go outside to use the bathroom. Trash was emptied into the window wells and honey and sugar poured around the foundation to draw in bugs. They also drilled holes in the drains and plumbing. This of course is an extreme case but could be a potential financial repair disaster if not properly inspected prior to purchasing a foreclosed property.
There are many opportunities in the foreclosure market in Colorado this year. We at Legacy Real Estate Brokers Inc. would like to offer our many years of experience working with our knowledgeable inspectors and loan partners to help you find your dream Colorado home. As an investor we will preview and present to you the right property to help you gain the most equity you need to make a smart financial real estate decision. Visit our website at www.discovercoloradorealestate.com to begin your search today and learn more about the current state of the Colorado real estate market.
Tom Reed and Bill Brown are local authors and real estate experts of Legacy Real Estate Brokers Inc. in Denver Colorado. You can visit their website at www.discovercoloradorealestate.com.
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About Local Author
Denver Colorado real estate experts Legacy Real Estate Brokerage, Inc. is a full service Colorado real estate firm specializing in Colorado real estate for sale including purchasing a Colorado custom home. They have outstanding brokers who are highly familiar with the neighborhoods, communities and lifestyle options available throughout the Colorado Real Estate market.
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