The word “foreclosure” often has a Hilton Head Real Estate Buyer envision deep discounts from the list price and real estate market value. The reality, especially on an Island like Hilton Head, may be less than what Buyers expect. Those deep discounts can happen but not always! Currently in the MLS, less than 2% of homes listed for sale on the Island are foreclosures and are scarce compared to other parts of the United States.
Often a regular sale may be a better opportunity than a foreclosure. At times a foreclosure is a truly distressed property which the Owners did not maintain, neglected and are in great need of repair and restoration…So, not ALL foreclosures are a good value. Perhaps the property was purchased at the peak of the market and the Bank is owed more money than the home is worth today. When considering a foreclosure there are several important things to note:
- Bank owned properties require that a Purchaser be preapproved by a Lender or show proof of funds.
- Most of the time a good faith deposit of 3-5% is required.
- Purchasers should have a Home Inspection done to determine the condition of the property and know what repairs will be needed since foreclosures are sold “as-is”.
- Usually the Bank will not do any repairs to the home.
- Determine what fees and expenses will be required of the Purchaser at Closing.
- Foreclosures may take some time to negotiate and close, so a Purchaser must have time and patience through the process.
Buyers searching for bargains may be successful although true bargains may not be a “foreclosure”. Find a real estate agent with experience and knowledge of the local Hilton Head market to help you through the process. A Realtor can help you find that “deal” and protect you from potential risks. A smart Buyer teamed with a good Realtor will be successful in finding those bargains which may or may not be a foreclosure.