Serving Santa Rosa, Escambia, & Okaloosa Counties

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When is Buying a Foreclosed Home Not a Good Idea?

We've all heard tales of people buying foreclosed homes at bargain prices. Websites and infomercials claim that you can find foreclosures for pennies on the dollar. It sounds too good to be true and in most cases it is.

While it is possible to find a good deal on a foreclosed home, it takes lots of research and persistence. Most foreclosed houses sell for only slightly below market value, and those that sell for much less are few and far between. There are also certain risks when dealing with foreclosed properties.

Many foreclosures are not in very good condition and this is sometimes one of the reasons that foreclosures sell more cheaply. The former owners almost certainly went through a time of financial hardship and that often results in a poorly maintained home. The owner may even purposely cause damage to the home when he realizes that foreclosure is imminent.

Another reason that a foreclosure may be offered at a lower price is because it is in a bad location. Whether you're planning to use the home as a residence or rent it out, location is important. A home that is undesirably located will be more difficult to rent at a decent price, and living there could prove to be unbearable.

There are legal issues that the purchaser of a foreclosure may have to deal with as well. If the previous owner still lives in the home, he will have to deal with eviction. It is even possible that the lender may not have full ownership of the home, resulting in major legal woes. Tax liabilities may be transferred to the new owner as well.

Foreclosures sold at auction pose their own unique risks. Prospective buyers often do not get the opportunity to inspect the property for sale, so they have no indication of what condition it is in. The full purchase price is often due in a matter of days, if not on the same day. Buying foreclosures at auction is a risky proposition for the buyer and is usually not a good idea for first time homebuyers.

If you have the time and patience to actively look for good deals on foreclosures and the experience to know how to handle them once you've bought them, they can be worthwhile. But they are usually not ideal for new homeowners. There are many problems that can occur with them and a new homeowner does not need to be exposed to the risks involved.


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  • First time selling a home...Leslie is a wonderful agent to work with. This was my first time selling a home and I was apprehensive about it. She was very quick to respond to all my questions and help... View More..
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    First time selling a home...Leslie is a wonderful agent to work with. This was my first time selling a home and I was apprehensive about it. She was very quick to respond to all my questions and help me feel comfortable with the process. She has a very welcoming and friendly personality. I enjoyed working with Leslie so much that she is now helping me with a home purchase!
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    Buying my first house...Leslie went above and beyond to help me go about buying my first house. She was very friendly and was always quick to respond to questions I had. This being my first house, I had many. She went out of her way to make time to help me and I am pleased to tell everyone that is looking to buy or rent a home to contact her. Her friendly smile was contagious, and I will definitely use her again on my next house purchase.
  • Sold our home in 4 days...Leslie was such a joy to work with. She not only knows her stuff, but she is such a sweet person that wants what's best for her clients. She was always willing to drop... View More..
    Whitney Bennett

    Sold our home in 4 days...Leslie was such a joy to work with. She not only knows her stuff, but she is such a sweet person that wants what's best for her clients. She was always willing to drop anything to meet with and/or discuss things over the phone at anytime. She sold our home in 4 days, helped us find a new home, and we were able to have double closings just a few weeks later!
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    Cindy Cotton. I have been the beneficiary of the most incredible real estate firm. That would be Cotton Real Estate. I did not know them before I hired them to list my first home. After that they were the ones we contracted with to sell our current home and purchase our next one. They have since sold that one for us and the purchase of the next one. We also bought some additional properties and of course, Cotton Real Estate is who we called. I have referred several people to Ms Cindy Cotton (mother and father-in-laws and good friends), who have had equally great service from them as we feel they are the BEST realtors that can be found. ANYWHERE. They are above board on their precision of the real estate market, will help you at every turn, are so educated about the contracts, what needs to be done, septic permits and inspections, the ever so awful qualifying and loans, and the quality and type of home that will work. I don't just recommend Cotton Real Estate to anyone looking to buy or sell, I would not use ANYONE else! Sincerely, Constance Stoner
  • Leslie was AWESOME! Leslie recently listed my home for rent and had it rented in 2 weeks. She was very responsive and would follow up with me to give me feedback on all showings which I greatly... View More..
    Paula Snow

    Leslie was AWESOME! Leslie recently listed my home for rent and had it rented in 2 weeks. She was very responsive and would follow up with me to give me feedback on all showings which I greatly appreciated because most property managers don't take the time to do this. Leslie found us a great tenant. She was wonderful to work with. We will definitely use her again. Thanks Leslie,
    Paula Snow
  • Excellent Work, Falen! Thank you for your excellent work on the sale of the Berryhill property and the acquisition of the Gulf Road house! Your advice was always well-informed. You made suggestions... View More..
    James & Linda Thompson

    Excellent Work, Falen! Thank you for your excellent work on the sale of the Berryhill property and the acquisition of the Gulf Road house! Your advice was always well-informed. You made suggestions which were useful. You pointed out items we had not considered. You were always professional while also being personable. You are an example for the real estate industry. Truly, Yours, James and Linda Thompson
  • Thank you Falen Haddy!
    My husband and I recently purchased a home in Pace , and Falen Haddy from cotton Real Estate was our realtor. She was amazing! She worked with us around... View More..
    Ashleigh Bowers

    Thank you Falen Haddy!
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