Should You Buy “As Is” San Jose homes?

SUMMARY: It’s true, foreclosure San Jose homes for sale are down 30%, but that doesn’t mean there aren’t deals to be had out there. According to a recent Century 21 survey, 63% of first time buyer respondents said they were considering a fixer-upper or “as is” home and 56% were looking at foreclosures and short sales for San Jose homes.

It’s true, foreclosure San Jose homes for sale are down 30%, but that doesn’t mean there aren’t deals to be had out there. In fact, Trulia.com currently lists more than 7,400 foreclosure San Jose homes for sale by people who were priced out of the market. Additionally, a number of San Jose homes for sale are fixer-uppers from people who are moving up and out, taking advantage of the low mortgage interest rates and dropping prices. Another segment of the market is comprised of “as is” houses that may require a lot of work. With the government giving first time home buyers an $8,000 tax credit they do not have to pay back, many young couples are looking at moving into their own place for the first time. Yet, with median average sales prices ranging from $265,000 – $817,000, many buyers of San Jose homes for sale are considering these foreclosure/as-is/fixer-uppers. According to a recent Century 21 survey, 63% of first time buyer respondents said they were considering a fixer-upper or “as is” home and 56% were looking at foreclosures and short sales. All in all, 87% of respondents said that price was the primary consideration when looking at San Jose homes for sale.

New buyers of fixer-upper San Jose homes for sale know that these purchases can lead to big expenses in the future if they’re not smart about securing the right deal. Reggie Marston, a certified member of the American Society of Home Inspectors, warns that a lot of people were long-time owners of the houses but couldn’t cover their mortgage payments, let alone cover routine maintenance or repairs. “Don’t panic,” says LA real estate consultant Raymon Mathoda. He says that prospective homeowners need to exercise due diligence and avoid giving-in to irrational fears that “all bargains will disappear.”

When looking at San Jose homes for sale, buyers must consider the difference between a foreclosure, a short sale and a fixer-upper. A foreclosure is typically a judicial procedure where the mortgage loan lender takes control of the property because the borrower has not paid the loan, as promised. A short sale is when a financially distressed borrower quickly sells the home for less than the mortgage balance which may abscond the homeowner from future payments. A “fixer-upper” generally is a home that requires a lot of work. An “as is” home is being sold in its current condition because the seller doesn’t want to pay to make the changes. When looking at San Jose homes for sale, short sales are usually in the best condition, but foreclosures sell cheaper. Foreclosure sales usually close in 14-30 days, so prospective buyers should have all their paperwork in order before they start searching.

The low prices of San Jose homes for sale like these are enticing. Yet home owners should learn to recognize warning signs – like cracks in the foundation that could cause future catastrophe, wet basements that might be havens for mold and rooftops that look like they could use more than just a few asphalt shingles. Hiring a home inspector is an important part of any home purchase, so buyers should definitely seek a professional opinion. Lastly, a $100 title search can buy peace of mind, ensuring that new owners won’t have to worry about an existing lien placed against their new dream property.