Working with clients who are looking at purchasing a beach vacation home in the Carolina and Kure Beach area (also known as Pleasure Island), we came across this foreclosure a few months ago that looked promising.

I mean, a new home this size and this close to the beach (1 block to a quiet section of Kure Beach with expansive views of the ocean from the 3rd floor) at this price is unheard of! Unit 1 of this Condo Duplex was already under contract at a significantly higher list price.

It seemed too good to be true.

The townhouse like condo had just come on the market. And since foreclosure listings typically have very few photos and those photos are typically really bad, I immediately set an appointment to go check this property out for my clients (who are out of town).

My initial reaction to foreclosure listings is “what is wrong with this one”?

No matter the price range, foreclosures tend to have repair issues you do not typically find in other homes.

I have found two reasons for this.

1. Home has not been taken care of by the previous owner
2. Home was tore up by previous owner (upset the bank just kicked them out of their home?)

Caveat Emptor – “Let the Buyer Beware”

Keep in mind that foreclosures are sold “AS IS, WHERE IS” most of the time. And basically, that means the bank will not make repairs and warrants nothing with the house. They wipe their hands clean when you buy the house. You get what you get.  If the house falls to the ground after you buy, you can’t go suing the bank.  You simply lose a lot of money.

With foreclosures, the risk lies with the buyer. So it is important to understand, as much as possible, if a foreclosure is a deal or not a deal BEFORE!!! you buy the house. Buyer’s have less contingencies in the purchase contract as well.

Do You Have Representation?

Unfortunately, so many buyers blindly think if it is a foreclosure, it must be a deal. And the agent representing the bank is not representing you (the buyer) and will only give you bare bones information without making sure you understand what is happening if you try buying without a buyer’s agent. The listing agent’s allegiance is to the seller.

So when I am working for a buyer as a buyer’s agent, my eyes are wide open and looking for problems when I walk into a foreclosure listing. My job is to protect my buyer by understanding their goals and to give insight and advice on how to best reach those goals. In this case, I was looking at this property with the knowledge I have of my clients goals and the knowledge of my experience as a real estate buyer’s agent.

I wasn’t surprised

And of course, when I stepped inside this home, I wasn’t surprised when I saw the problems.  Yet, I was absolutely perplexed at what was the cause behind what I was seeing.

To keep things short and interesting, I am going to write about this foreclosure in a multiple part series.

You will want to stay tuned, because at the time of this writing, this property is still on the market.  If you think it is a possible opportunity for you, I do want you to contact me.

Part Two

In Part 2, I will go over the details (including price, square feet, and # of beds & baths) of this Kure Beach NC Foreclosure and show you the photos I took that highlight the positive features of this home. I will also give you a bulleted list of what I think are the pros that I see with this home.

Part Three

In Part 3, I will show you my photos that capture some of the drawbacks. Like in Part 2, I will give a list of things I think are negatives. I want you to tell me if you think this foreclosure is a deal or not after you have read Part 3.

Part Four

In Part 4, I will share with you what I advised my clients concerning this house.

Part Five

In Part 5, I want to discuss very frankly the importance of good advice and solid buyer agent representation. This is will be a post you will want to read. It could save you heartache and thousands of dollars in making avoidable mistakes when buying real estate.

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