The Carolina Crew: Is a Kernersville foreclosure all that?

If you are thinking of buying a house in Kernersville then you know the hype around a foreclosure is unavoidable. Kernersville foreclosures can be a great deal. However, can they really live up to the hype? Well I have seen and sold a lot of this bank owned homes in Kernersville and I thought I would share my experiences.

The short answer is that a foreclosure is usually discounted since they are almost always priced to sell "as-is where is." As a distressed property you would expect some form of discount. Therefore, Kernersville foreclosures will nearly always come with a reduced price. Does that make them a good investment?

Kernersville foreclosures are only a good investment if the cost to cure combined with the purchase price can keep you at or below market price. This will allow a home buyer or investor to get the home back to good condition and it will be able to fetch a fair market price. Then it can be rented, lived in, or flipped.

The goal of the purchaser is ultimately the determining factor when it comes to qualify a Kernersville foreclosure as a good deal. If you are buying to live in then or rent then you want your total investment (purchase price plus repair costs) to be at fair market value. This will allow you to hold the property and gain long term appreciation while gaining equity as the mortgage is paid down. If you are flipping homes then you have to have total investment cost BELOW market value. In order to flip in this market you must be in top condition and lowest price. Buy low, sell low.

So is a Kernersville foreclosure all that? The answer is that it can be if you have a clearly defined goal when buying and work with an experienced agent who can advise you. Kernersville foreclosures are out there, it is up to you to make them a good deal.