Then, Foreclosures Sold in As Is Condition
When I work with investors, foreclosures, bank-owned, and distressed properties have always been their first choice. They love to plan renovations and calculate the possible return on investment. In the past, they haven’t always been my favorite to show. Typically the power would be off and the walls would be riddled with holes. Usually, the management company would have pulled up all the carpet leaving just the concrete slab and tack strips behind. I’ve even seen daylight through more than one roof! As awful as they were, (and believe me, some were AWFUL) investors would drool. For most of the investors I’ve represented, the uglier the house, the better. They can overlook all those issues with property condition because even though they know it is being sold as is, the slashed price almost always makes the extra work worth it to them.
Now, Banks are Fixing Up Distressed Properties
Today I was showing a foreclosure in Edmond to an investor I’ve worked with for a few years. The property was in great condition. Instead of finding holes in the walls, we found fresh paint. Instead of holes in the roof, we noticed a package of new shingles left over from the recent roof replacement. Instead of a concrete floor and tack strips, we found new wall to wall carpet throughout the house. The house was as clean as any other available listing in the neighborhood. And the pricing was right in line with those other homes too. There wasn’t any drooling today.
I love that the trend now is for some of these distressed properties to be fixed up and priced at market value. I’m sorry for the investors I work with. But for the market as a whole, I can’t be happier. It will level the playing field. This is a really good thing!