Should Foreclosures Be Torn Down?
There is a lot of debate surrounding the question as to whether or not foreclosures should be torn down. The case for demolition can be compelling, especially if rehab isn’t worth it. But what about homes that might be worth saving? What do you think?
If you think about it, many foreclosures are abandoned or vacant. Squatters frequently move in, as do rodents and criminals. Previous homeowners strip the home of pipes, windows, doors and appliances before they are forced out. All in all, many foreclosures become the visual blight of the neighborhood.
Foreclosures rapidly decline in value and can hurt the value of the homes surrounding them. So, if you are trying to move from a neighborhood that has a lot of foreclosures, your home’s value will inevitable be reduced.
What to Consider
Of course, not every foreclosure falls into ruins. It really depends on the location and the market condition. If a bank is to bulldoze a property, they take both factors into consideration. Sometimes, banks are able to sell foreclosures to families hoping to move into a new home at a discount. Other times, the house just sits and eats money.
When there is noone able to buy the properties in a given market, or a property is in extreme disrepair, it makes sense to tear it down. Sometimes, a demolition can be seen as an improvement in the area. In most areas, homes that end up being torn down after they fall into foreclosure are those valued at $15,000 or less.
Lance GroomsBack to all blogs
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