If you’re ready to buy Detroit real estate as an investment or as a home, you can find great opportunities thanks to the levels of the real estate market. In Detroit, unemployment rates are high and many homes have already been lost to foreclosure. In addition, the credit market remains tight. While this is bad for homeowners who have already lost their homes, investors are in the midst of a time of incredible real estate opportunities.
You can find houses for sale in Detroit through many means. Real estate channels are the most understood by buyers who are unaware of the other options. MLS services show houses that are being handled by real estate agents. The housing market has declined in recent months, partly because there are so many people trying to sell.
Real estate property (REO) properties are those that have been repossessed by the lender, usually a bank, in a foreclosure action. The sale price of these houses is usually the value of the unpaid mortgage amount. However, when inventorying those homes there are good deals to be had if you are willing to shop around and negotiate with lenders.
Sometimes foreclosed homes are put up for a sheriff’s sale. This is a formal auction. If you are a high bidder for such a home, it can be much lower than the standard market cost. However, the company that has a lien on the property often raises the price to recover most or all of its original investment. You should be familiar with market values in the area to avoid paying more than the property is worth.
By purchasing a home directly from an owner who is struggling financially, you may be able to save a significant amount of money. If the seller acknowledges that the property will be repossessed, there may be a decision to sell it to an investor, sometimes just for the amount of unpaid mortgage payments. Avoid a “due to sale” clause in the mortgage.
The Internet offers many websites where you can buy real estate in Detroit, as well as in other cities across the country. Some houses sold online at auctions can be ridiculously cheap. If you want, you can buy a house for $1 plus fees, but you’ll most likely have to invest money in renovations before the property can be rented or resold.
Detroit real estate can provide opportunities to build a real estate business or own your home for less than the price of a family dinner. Be sure to do the research that tells you what is necessary to determine how much renovation work will be necessary. Other things to check include any EPA issues, clean titles, and other liens against the property.
