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Buying a Morristown NJ Foreclosure
By admin | November 19, 2008
Buying a Foreclosure for investment purposes in Morristown New Jersey.
A few weeks ago I included in a post how I was possitive enough on the Morristown NJ Real Estate market that I was in the process of trying to buy a home which was in foreclosure. Today’s blog post is a short update on what has happened in this process.
First I want to say, buying a foreclosure can be a great investment, but just like with every investment there is a risk reward equation that one must take into account. When you purchase a regular home (one that is not in foreclosure, but rather you are purchasing from the home owner) the amount of risk you are taking is very limited. First, when you look at the home the power, water, heating, and cooling are usually all working and ready for you to inspect them. Second, the current home owner is usually willing to allow you to bring in a qualified home inspection service to do a full home inspection to ensure that the home is in acceptable condition in order for you to proceed with your purchase.
When purchasing a foreclosure normally you get none of the above. Normally the electricity, gas, water, heating, and cooling are all turned off and not availible for you to inspect for their function. You cannot even tell if there are any current plumbing leeks. Normally in the case of a foreclosure the bank will not accept any contingencies such as a home inspection, or mortgage contingency, or …
So on with my experence in trying to purchase the Morristown NJ Foreclosure. As I was saying before, I did all of the background inspecting of this home, and made sure I was comfortable with making a offer. I put together my offer on this home, and submitted it to the listing agent for the foreclosure. As soon as I got the foreclosure listing agent on the phone he informed me that there were 2 offers on the home already, and another one coming in by the end of the day. The next day, I get yet another call from the foreclosure listing agent to inform me that the bank was asking everyone to come back with their highest and best offer within 2 days.
So now I was in a bidding war for a home which was in foreclosure. I ran my numbers, (I really did not need to do this as I already new the home was a scream of a deal) and adjusted my offer. I knew that even with my adjusted offer, and the $50,000 in upgrades I planned to put into the house, that there was likely a $60,000 profit potential in the foreclosure house.
Two days after I submitted my revised offer I was informed that I was out bid.
All I can say is WOW, I guess there are lots of people out looking for great deals just like I was.
If you are looking for a great Morristown NJ real estate investment stop on my the best home search in the area.
Category: Morristown |
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