While it makes perfect sense to assume that a foreclosure in Kenai Peninsula Real Estate should be more affordable than a non-foreclosure, not every one constitutes a great bargain. Even if the goal is to land your next residence, a worthwhile way to gauge the value of any foreclosure is to look at it from an investor’s point of view: would the property yield worthwhile returns?
Determining that involves using some common benchmarks. Here are some of the leading factors that contribute to making a cool foreclosure evaluation:
How much did other houses sell for locally?
While the price of a property you are looking at may strike you as quite affordable, whether it represents true value is only apparent when compared with recent Kenai market trends. According to Calculated Risk, the discounts foreclosure buyers are finding have begun “to drop to pre-crisis levels.” That lines up with other evidence that the foreclosure market is stabilizing as underlying home values and inventories rise. In any case, be sure to have your agent provide comps for similar properties sold in the area.
How many houses are vacant in the neighborhood?
Some neighborhoods have a considerably higher foreclosure rate than others do. If the neighborhood you’re evaluating incorporates a high number of vacant properties, the price should reflect that. Such areas tend to be relatively unattractive to other buyers for a number of reasons (including a tendency toward higher crime rates). Even if you have no intention of reselling or renting out the foreclosure you are considering, the neighborhood’s character should be factored into your decision.
Cost to renovate?
While it’s hardly unusual for a foreclosure in Kenai to need some work, the details can be decisive. Ask an appraiser to go over the property. A good one will be able to give you a close approximation of the extent of renovation you should expect.
Great deals can be found in unexpected places – sometimes it just takes the help of a great agent to uncover. If you are considering buying a Kenai home – foreclosure or not – I hope you will give me a call!