Buying a foreclosure? Can you afford to fix it?
I was just talking with another one of the real estate agents in the office who is selling a lot of foreclosures in the St Cloud area and one topic became glaringly clear to us. A lot of people who are purchasing foreclosed properties are not fully anticipating how much it will cost to repair the home.
While not all foreclosed properties in the St Cloud area are completely trashed, most are. Especially when you look in the <$100,000 market. These homes generally need much more than just paint and carpet (and paint and carpet can sometimes run $5000 on their own).
With this in mind, if you have been pre-approved for a loan to purchase a home that needs some work, take the time to accurately calculate the true cost to make living there comfortable. Get bids from contractors if necessary to give you a better picture of all of the expenses involved. Does the home need carpet? paint? doors & windows? Do you have some liquid cash to fix potential problems? The answers to these questions will really dictate the answer to your buying decision.
Jason Tangen, GRI - Real Estate Broker Associate with Edina Realty in St Cloud, MN
http://jasontangen.edinarealty.com - Search for open houses in St Joseph, MN
