In the Boston Herald's Spring real estate section April 4, 2008, an article by reporter Paul Restuccia discussed "some unusual pitfalls that house hunters need to watch out for."
I discussed foreclosures with Paul on Tuesday April 1, 2008.
"Foreclosures. Richard Rosa of Haverhill’s Buyers Brokers Only said purchasers should exercise care when looking at foreclosed homes.
“'Some bank-owned properties can be good deals, but almost all of them need work,' he said. 'If you don’t have the money to fix them up after you buy, the work will never get done.'”
“Short sales. Also use caution with 'short sales,' where a lender agrees to let a homeowner sell a home for less than the mortgage balance.
"Rosa got a bank to accept a $380,000 offer on Revere home with a $550,000 mortgage balance, but said lenders can take months to sign off on such deals."
Find foreclosed listings and short sales at MassForeclosed.com
Gary Dwyer, a buyer agent in Boston, had some good advice about purchasing homes that have been "rehabbed."
"When looking at rehabbed properties, beware of what Gary Dwyer of Buyer Agents of Boston calls 'caulk-and-spackle' renovations: Cosmetic work that merely covers up problems."
I have seen many properties marketed as "like new" that have had poorly done renovations.
Read The Boston Herald Article