Home » Real Estate

Click here to view
the full print edition
of Avenues
View Property Transfers


AVENUES PARTNERS:
NH homes for sale



Search MLS

Courtesy of


Type:
Residential
Condominium
Multi Family
Land
Mobile Home
Commercial
Rentals

Towns & cities:
Price:
Low:   $
High:   $
Villages:

Locate open houses

Search By MLS #

Classifieds


 ♦ REAL ESTATE
 ♦ APARTMENTS
 ♦ HOME SERVICES
 ♦ HOUSEWARES

Click to place free online ad for items valued under $500.

Opinion

May 08. 2014 11:52PM

Real Estate Corner: Pros, cons of buying a distressed property

Prospective homebuyers are always looking for a bargain price, but typically when a property can be snapped up for a low price, there’s a reason.

Most often, a house with a drastically reduced price will be on the market as a short sale because the owners are hoping to avoid a foreclosure or because the property has already undergone foreclosure.

While the price may be enticing, it’s important to understand what you are buying. First and foremost, a foreclosure or a short sale will nearly always be sold “as-is,” meaning that the owners, whether they are a bank or the residents, won’t be fixing anything before the sale.

The main reason to buy a distressed property is the price. In most cases, a foreclosure or short sale will be priced below market value because the sellers are in a hurry to complete a sale and because they don’t want to spend the money to repair a property in order to bring a higher price.

If you are eager to become a homeowner or want to invest in real estate, a foreclosure can be a good place to start, provided you know what you are doing. A Realtor experienced in distressed properties can guide you to make sure you purchase a home that will eventually increase in value.

When mortgage rates are low, you can take advantage of inexpensive financing to buy a bargain and then sell it later for a profit.

The main risk in purchasing a foreclosure is the reason the property is set at a low price: the condition.

If you are purchasing a house that is in bad shape, you will need to set aside funds to hire contractors or to pay for materials to improve it. Some foreclosures are in OK shape, but others lack appliances, have damaged walls, and may need extensive electrical or plumbing repairs. You may or may not be able to have an informational home inspection on a distressed property, but even if you do, it will be up to you to finance any repairs.

You should also be aware that not all distressed properties can meet the requirements of a lender, given the property’s condition. You will need an appraisal, and for many loan products the lender will need to assess whether the property can be lived in and has value.

If you have experience fixing up homes or a network of trustworthy contractors you can hire, buying a distressed property in bad condition may still be a good deal. If not, you may want to work with a Realtor and a home inspector who can give you a good sense of what it will cost to bring the home into good condition.

Many investors purchase distressed homes with cash, so it’s best to be prepared for potential competition from cash buyers. If you don’t have the cash yourself, you can work with a lender to secure a strong loan prequalification. To be an even stronger bidder, you may want to increase the size of your down payment or your earnest money deposit.

In some cases, a distressed property will require complex paperwork before you can take possession of the property, so be prepared to be patient.

Educate yourself and work with professionals who can recognize the value in different properties so that you don’t find yourself owning a distressed property that requires too much work or sits in a location that negatively affects its long-term value.



.

Michele Lerner is a columnist for REALTOR.com.

This information has been provided by the New Hampshire Association of Realtors in conjunction with the New Hampshire Union Leader’s Advertising Department. Readers with questions about the content, or who wish to pose a question for a column, can contact the association 115A Airport Road, P.O. Box 550, Concord, NH, 03302-0550 or Dave Cummings, director of communications, at dave@nhar.com.




Real Estate

Windham considers future of Campbell Farm property

READER COMMENTS: 0

Voters approved the purchase of the Campbell Farm site last March. Town officials have plenty of ideas for enjoying the farm's outdoor features but are currently at loss when it comes to the...

Nashua panel wants details on proposed site for city's new public health building

READER COMMENTS: 0

A proposed new city health building could also possibly house Greater Nashua Dental Connection and the Child Advocacy Center, says mayor.

Request to start funding Londonderry auditorium may go to voters in March

READER COMMENTS: 0

A study committee tasked with compiling options to build a community and school auditorium in Londonderry released its recommendations this week.

Judge nixes house arrest for man convicted in Ponzi scheme

READER COMMENTS: 0

After serving 18 months in prison, the man who formerly chaired the school board will be released in October, but will not be allowed to return to the community he betrayed.

More than 250 people crowded a meeting Tuesday night on Mount Sunapee's five-year master plan.

Sunapee officials say they don't plan to build housing

READER COMMENTS: 0

Though more than half of the audience speakers at Tuesday night's public hearing on the new five-year plan for Mount Sunapee spoke in favor of the plan's proposals, those in opposition are asking the...

RocketDrop is the fastest-growing private NH company on Inc. list

READER COMMENTS: 0

RocketDrop, a wholesale distributor of consumer electronics, including iPhones, scored the highest ranking of any New Hampshire private company in five years in an annual list of fastest-growing,...

July new home sales disappoint

READER COMMENTS: 0

New homes sales dipped in July, the government said Monday in a disappointing monthly report that highlights ongoing problems in the housing sector.

The “new” Farragut Hotel, seen in 1987, was built on Ocean Boulevard in Rye to replace the original, which was torn down in 1975, but it was never occupied and stood empty for more than 20 years before being torn down in 2003.

The Farragut Hotel: A landmark to Demoulas, Market Basket conflict

READER COMMENTS: 0

Back in the early 1970s, Valley Properties — the real estate branch of the Demoulas family business — bought the Farragut with plans to replace the Seacoast landmark and Gilded Age...

New Hampshire Catholic Charities is looking to buy the Department of Employment Security building on Hanover Street in Manchester.

Hanover St. building has a buyer

READER COMMENTS: 0

Lisa Merrill-Burzak, vice president of development for New Hampshire Catholic Charities, said the nonprofit plans to use the Hanover Street location to consolidate programs and rent less space around...

Route 101 plaza unanimously granted two variances for improvements to property

READER COMMENTS: 0

The owner was requesting two variances from the board: first, to construct a building six feet from the front yard property line, where 60 feet is required, at 209 Route 101; and second, to construct...

Bridge Street project developers in Nashua to seek alternative financing

READER COMMENTS: 0

Renaissance Downtowns will apply for low income housing tax credits in an effort to secure financing for its Bridge Street housing project.

Nashua aldermen seeking developers for downtown area

READER COMMENTS: 0

City officials approved a proposal this week that may eventually bring a hotel, performing arts venue or additional housing to the downtown area.

A mock-up, available for viewing at Bedford Town Hall, shows the proposed shopping center redevelopment of the Wayfarer Inn property, including a Whole Foods Market.

Whole Foods confirms Bedford store will be on Wayfarer property

READER COMMENTS: 0

The Austin, Texas-based health food grocery chain, has officially announced its new store in Bedford will be located at 121 South River Road, site of the former Wayfarer Inn.

Mary Tamposi: When our vets suffer in crisis, so does the family

READER COMMENTS: 0

Our servicemen and women, whether already home or returning, face a unique set of challenges.

3 waivers granted for Wayfarer property in Bedford

READER COMMENTS: 0

The proposed shopping center at the former Wayfarer Inn property was granted three waivers on Monday night pertaining to the subdivision of the property.

Proposed Manchester student housing plan raises finance questions

READER COMMENTS: 0

An aldermanic committee on Monday had a mostly positive reaction to the latest proposal to build a residential tower for college students on the site of a city parking lot, but members raised...

New assisted living facility proposed in Gate City

READER COMMENTS: 0

The vacant Nim-Cor building along Amherst Street may eventually be razed to construct a new assisted living facility.

Bay State developer not giving up on Manchester student housing plan

READER COMMENTS: 0

A Massachusetts-based developer wants another crack at buying the city's Pearl Street parking lot to build nine-story towers for college students.

The Vegas Building on Main Street in Concord was the site of recent closure to residents due to unsafe conditions.

Concord court orders help for evicted tenants

READER COMMENTS: 0

A judge ordered the city of Concord to put up evicted tenants of the Vegas Block who sought the help of New Hampshire Legal Assistance after the building was ordered closed in less than 24 hours for...

The buyer for the old Manchester police station on Chestnut Street is Tranquility Holdings LLC, an entity established by Candia businessman Francis Rich.

City signs off on deal to unload old Manchester police station for $875,000

READER COMMENTS: 0

The mayor and aldermen have signed off on a preliminary deal to sell the old police headquarters for $875,000, less than half the amount sought when the property was first put on the market two years...

Home & Garden

The Salem Planning Board recently approved the site plan for a botanical garden at a former miniature golf course on North Broadway.

Former mini-golf course to transform into botanical gardens

READER COMMENTS: 0

Salem gets more than its share of retail stores and restaurants approved by the Planning Board along Rte. 28, but the latest plan approved for 350 North Broadway should bring more than a touch of...

The garden of Michael and Betsy Gordon in Peterborough is one of six on the Aug. 23 Open Days tour in the Monadnock Region.

Monadnock-area garden tour Aug. 23

READER COMMENTS: 0

The Garden Conservancy's next NH open gardens day focuses on the Monadnock Region.

Community garden in Salem busts out all over, causing concern

READER COMMENTS: 0

It has been a great growing season at the town's community gardens at Hawkins Farm, in fact, maybe a little too good for some gardeners who have been expanding their plots more than is allowed.

Exploring New Hampshire's not-so-secret gardens

READER COMMENTS: 0

These gardens aren't exactly a secret – most of them are public – but some of them will make you feel like you are walking into a fairy tale. Historic, beautiful, one-of-a-kind, unique;...

Firefighters from nine towns help extinguish Farmington mulch pile

READER COMMENTS: 0

A large mulch pile that caught fire created problems on Chestnut Hill Road Sunday morning.

New Hampshire Agricultural Fairs create fun for all

READER COMMENTS: 0

We've already seen some fairs go by. But they start early in New Hampshire.

Home & Garden

The Salem Planning Board recently approved the site plan for a botanical garden at a former miniature golf course on North Broadway.

Former mini-golf course to transform into botanical gardens

READER COMMENTS: 0

Salem gets more than its share of retail stores and restaurants approved by the Planning Board along Rte. 28, but the latest plan approved for 350 North Broadway should bring more than a touch of...

Kathy Zorawicz's driveway had to be torn out due to water damage. She successfully appealed a driveway permit waiver fee via the Goffstown Board of Selectmen.

Goffstown resident obtains driveway permit waiver, but still questions practice

READER COMMENTS: 0

Resident Kathy Zorawowicz was unpleasantly surprised when she learned that she would have to pay a $100 permit fee to repave her driveway, due to damage she claims is the town's fault. While she...

Windham Estates to get more fire hydrants

READER COMMENTS: 0

As part of a long-overdue water line replacement, the Windham neighborhood will get nine more fire hydrants. Right now there is only one hydrant servicing Windham Estates.

The garden of Michael and Betsy Gordon in Peterborough is one of six on the Aug. 23 Open Days tour in the Monadnock Region.

Monadnock-area garden tour Aug. 23

READER COMMENTS: 0

The Garden Conservancy's next NH open gardens day focuses on the Monadnock Region.

Community garden in Salem busts out all over, causing concern

READER COMMENTS: 0

It has been a great growing season at the town's community gardens at Hawkins Farm, in fact, maybe a little too good for some gardeners who have been expanding their plots more than is allowed.

Exploring New Hampshire's not-so-secret gardens

READER COMMENTS: 0

These gardens aren't exactly a secret – most of them are public – but some of them will make you feel like you are walking into a fairy tale. Historic, beautiful, one-of-a-kind, unique;...

New Hampshire Agricultural Fairs create fun for all

READER COMMENTS: 0

We've already seen some fairs go by. But they start early in New Hampshire.

With Market Basket shelves bare, fresh produce from the Salem Farmers Market could be more popular than ever this weekend.

Salem Farmers Market organizers planning for big turnout

READER COMMENTS: 0

The Salem Farmers Market is reliably one of the busiest and best attended in the state. But this Sunday's market looks like it could be the busiest it has ever seen.

Nashua developer Gerald Nash

Developer Jerry Nash leaves legacy of honest real estate deals

READER COMMENTS: 0

In addition to his success as a New Hampshire real estate mogul, and his fame for being one of the most active developers in the state, Gerald “Jerry” Nash was a man of his word,...

Enzo Scott, 8, of Auburn feels the runoff as Garden Manager Tracy Morley pours water on a clump of straw while giving a lesson in the 4-H Teaching Garden at Massabesic Audubon Center in Auburn last week. Also pictured is Jacob Sevigny, 10, of Bedford.

More than plants grow in 4-H Teaching Garden

READER COMMENTS: 0

Lessons in helping others are growing in a garden plot on the grounds of the Massabesic Audubon Center.

Salem planners OK four-lot subdivision plan

READER COMMENTS: 0

The Planning Board has approved Richard Mika's plan for a four-lot subdivision on Lakeshore Road and Goodridge Avenue.

Real Fallu shows off some of the daylilies providing a blaze of midsummer color in his Goffstown perennial garden.

Acres of summer color, without irrigation

READER COMMENTS: 0

Tucked away from the winding street at 425 Tibbetts Hill Road is the home of Real and Leslie Fallu — a property filled with brilliant, fiery color in the second half of July each year, courtesy...

An aerial view of the plot at 12-8-4 Kilton Road, which would include a health club, retail building and restaurant.

Bedford health club proposal raises concerns

READER COMMENTS: 0

Residents who live near a proposed health club, to be built at the corner of Kilton Road and Sullivan Drive, expressed concerns over the project at Monday night's planning board meeting.

Artist Mauli McDonald with an armful of raw materials for her designs.

Nature is the essential medium for Sunapee-area artist Mauli McDonald

READER COMMENTS: 0

From childhood fantasies of fairy houses and unicorns, a career as a botanical artist is born.

An aerial view of the plot where the mixed-use development, including an 116-unit senior apartment building, would be built.

Developer spells out mixed-use plan for Bedford project

READER COMMENTS: 0

A proposed mixed-use development, including a 55-and-older housing facility, at 379 South River Road is one step closer to fruition after a request for conceptual review at Monday night's Planning...

In anticipation of the July 14 start of the 2014 season, Sheila Fabrizio on Wednesday inspects the incoming blueberry crop at Windy Ridge Orchard and Christmas Tree Farm in North Haverhill. There are 1,000 pick-your-own, high-bush blueberry plants, divided among five varieties, on a two-acre parcel at the orchard which is also well known this time of year for its blueberry pancakes and blueberry wine.

Despite late start in growing season, North Country's blueberry picking season soon to be here

READER COMMENTS: 0

Despite a slight delay due to a colder-than-normal spring, the 2014 blueberry season will soon be here and it should be delicious, say North Country growers and agriculture officials.

Terri McKinnon walks along a path through perennials in the yard in Goffstown.

Good neighbors make great gardens in Goffstown

READER COMMENTS: 0

That three special gardens in greater Manchester are right beside each other is mostly a (very big) coincidence.

Salem community gardens enjoying a successful summer

READER COMMENTS: 0

The growing season is a little late this year, thanks to a wet spring, but everything seems to be running smoothly at the town's community gardens at Hawkins Farm.