Buying a Foreclosure in St Louis
Whether you are looking for your next investment property or a primary residence, buying a foreclosure is a smart idea. Mortgage rates are at an all-time low and a foreclosure gives you the chance to make your home buying dollars stretch further. If you are an investor then you probably already know the value of a foreclosure, in and around St Louis you can save anywhere from 20-50% on the value of a home. As an investor you can recoup your investment pretty quickly.
While there are St Louis residents that inevitably lose their homes to foreclosure, the city fares better than most in the number of foreclosures. The city is in much better shape than many other cities in the country. Missouri is 33rd when it comes to the number of foreclosures but that number is down over the previous year. That is because home prices are up and their economy is in pretty good shape. Since 2008 and the housing bubble bursting lenders have worked harder to keep people in their homes rather than pursuing foreclosure.
Finding foreclosed homes is a bit more difficult than looking for regular listings, competition is fierce especially in a seller’s market like St Louis. That doesn’t mean it is impossible but first you should find a realtor that specializes in these types of homes. A good realtor can have the inside track on homes that are about to come up for foreclosures. At the same time you need to look for properties on your own as well, here is how you do that.
The city of St Louis has roughly 3 million people and on average 200 homes are foreclosed on each and every month. The average home price in the county is $117,000 and foreclosure savings is somewhere between 20-50% so you can save anywhere between $20, 000 to $50,000 on your next property. However it is not quite that simple. Foreclosures are sold “as is” and it is entirely possible that you won’t even be able to look inside the property before it gets auctioned off. You have to consider that not everyone defaults on their mortgage because they can’t afford the payments, some will default because they can’t afford the repair costs. You can end up buying a great piece of property or you can end up with a house that needs extensive repairs.
Foreclosures can make for some very good deals, in St Louis several hundred foreclosures come on the market every month. Keep your eyes peeled for your next great deal.