We are working with a buyer who wants to buy a Miami Condo in a building that is on the verge of foreclosure! So,as a Realtor, I have to ask “With prices to die for, when does PRICE warrant the RISK?”
The potential pitfalls of buying in an unstable building are numerable. Downfalls vary from increased assessments (to cover assessments on foreclosed condo units) to lack of services, maintenance and repair issues … broken equipment… lack of electricity … no air conditioning… boarded up windows… and loss of equity.
There are condos selling for pennies on the dollar now (in South Florida as well as elsewhere)… which just dangles the carrot for prospective buyers. Prices seem appealing. But how far will the value dip as more condo owners fall short on their maintenance and mortgage payments? What will happen to the value if the building (that’s on the verge of foreclosure) actually goes into foreclosure? Worth the risk, investing in it? The New York Times wrote an article on the “Hidden Dangers of Buying Condo Foreclosures” pointing out the numerous pitfalls. Food for thought!
There are plenty of savvy investments to be had. Solid ones. But rather than jump blindly into something ‘sketchy’, you are far better off consulting with a real estate attorney (and ordering a title search) and working with an experienced Real Estate Professional. If you’re looking for a professional Realtor, I invite you contact me at 305 793-1365 or here and I’ll be happy to assist you with any of your real estate needs – whether in Miami or internationally.