Market trends reflect that the number of foreclosed homes in Burlington, VT was down .07% from a year ago. Accordingly to Trulia, there are currently 138 resale and new homes for sale. The average listing price for a Burlington, VT home was $429,035 for the week ending Sep 21, 2011 which was an increase of 4.7%, compared to the prior week. Hot neighborhoods include South End and New North End, with average listing prices of $557,942 and $277,673, respectively. Burlington was named by Worldwide ERC and Primary Relocation called Burlington “one of the best cities for relocating families”. No wonder why more buyers are looking for foreclosed homes here. Burlington boasts about being eco friendly as well. Burlington is a great choice for investing in foreclosed homes. There is a strong rental market for investors who are going to rehab the properties and rent them out.
Lake Champlain and the City of Burlington also offer many outdoor recreational activities including boating, sailing, swimming, scuba diving, and fishing. There are numerous local parks with bike paths and trials for hiking. You can ski or snow board at one of the many nearby resorts. With so much to offer, investing in bank repossessed homes is a smart investment choice.
Locating Foreclosed Homes
Foreclosures in Vermont are conducted by judicial process, which means if you purchase a Burlington foreclosed home at a foreclosure auction, the court will need to approve the sale before title can be transferred to you. If the foreclosure was conducted under strict foreclosure proceedings, the former owner has no redemption rights. To find about a foreclosure auction, check the city courthouse records or drive by the property. A notice should be posted with the time and date of the sale. You can also check the local newspaper. Keep in mind that many times foreclosure auction sales are postponed because the owner and the bank are in the process of negotiating so you have to keep tracking the home. If the home does not sell at the foreclosure auction, the bank buys it back and it becomes a REO or real estate owned property. The bank will then list it for sale with a local Realtor, who advertises the property in the MLS.
Due Diligence
It is important to do your due diligence such as inspections and title searches especially when purchasing an auction property. All foreclosure properties are sold as is with no warranties or guarantees so it is up to you as the buyer to conduct an inspection. While bank repossessions sold at auctions offer deep discounts, REO properties are also good buys and are sold below market value. REO’s offer buyers less risk because the bank has already paid the liens off, you don’t have to worry about evicting the former owner or any tenants because the properties are vacant, and you can obtain title insurance as well as conduct a home inspection. Also, you don’t need cash to purchase a REO, but cash is required for most auction homes.
Inspections
Foreclosed homes are not always in the best of condition so it is wise to have a property inspection. Look for leaks and mold because homes have been sitting vacant and are not being maintained. You need to find out the condition of the property so you can make the right offer. If the home needs major system repairs or has structural damage, this will cut into your profit margin. You may want to look for a home that needs cosmetic repairs instead unless you are handy and can fix the home yourself. Ask a local Burlington Realtor to conduct a comparative market analysis for you so you can determine what the right price is for the home. Not all repossessed homes are good deals, and you want to make sure that you are getting the home at the right price. There are also many repossessed homes that are in move in condition as well. They sell fast though.
When you do find the right repossessed home that meets your criteria, jump on the opportunity because there is a lot of competition for repossessed homes in the area, and you don’t want to lose the chance to buy a good home. If you have cash, you have a competitive edge when you make an offer. Banks like cash because they know you can close quickly. Also, if you are purchasing at an auction, you will need to pay with cash. Right now is a great time to purchase Burlington foreclosed homes because the prices are affordable, and there is a huge upside on making a return on your investment, especially when real estate market conditions turn around.
