Sedona Foreclosure Homes
10 Tips and 5 Facts
Are you interested in Sedona foreclosure homes? We’ve sold quite a few foreclosure homes in the Sedona Arizona area over the years. A question we get is ‘how was Sedona real estate affected by the recent recession?’. Sedona did have a fair number of foreclosure homes, but nothing like Phoenix and Las Vegas. The number of foreclosures in Sedona began to decline beginning 2012. Right now we average about 3 foreclosure homes in Sedona at any given time. We can’t put an average price on the foreclosure homes in Sedona as we have both ends of the market. The home that is close to being bulldozed and the pristine Sedona luxury home.
See the current Sedona market stats.
10 Tips For Buying Sedona Foreclosure Homes
- Check the market value of the home. Is this Sedona foreclosure home priced below market value in it’s current condition?
- Banks are all about the money. They have no emotion or attachment to the property. The banks foreclosure representative, aka the Asset Manager, is graded on his job performance on how much money he can extract from the property in the shortest amount of time. Expect to see price reductions every 30 days or so. If the foreclosure homes price is reduced far enough, it can be a great deal. You just have to be ready when that happens. We see bank owned homes sit on the market for months and then when the price is reduced enough it becomes a bidding war.
- Visit the property. Do not buy a foreclosure without seeing it in person. Pictures and video may not convey the full picture.
- How’s the neighborhood? Is it the small dumpy home among the bigger more expensive homes or just the opposite? Look to future value.
- Is the condition acceptable? Deferred maintenance goes hand in hand with financial difficulties. What’s it going to cost to get it back in shape. Has the home been stripped of appliances and fixtures?
- Can this home be financed? Not every foreclosure home can be financed. We can work with you to find a foreclosure home suitable for a mortgage.
- Is it vacant? It should be, but on occasion we’ve seen where the previous owner may move back in. Squatters are another possibility although very rare in Sedona.
- Was the home winterized? Typically a foreclosure is sealed up when the bank takes possession and part of the process is to turn off all utilities. If it wasn’t winterized you could be surprised by burst water pipes
- How’s the landscaping? If it’s summer in Sedona and the water is off the plants will die. The drip irrigation system (probably broken) will not be running.
- Do you want to flip the foreclosure home? Make sure it’s allowed. The FHA and some banks may have a clause to prevent quick sales and flips.
Graph of the number of Sedona foreclosure homes from 2009 to 2018
Sedona Foreclosure Homes Sold by Year
5 Important Facts To Know When Buying Sedona AZ Foreclosure Homes
- In Arizona, the primary method of deed of trust foreclosure is non-judicial. Arizona law does not permit foreclosed homeowners to redeem the home after a nonjudicial foreclosure. In a number of states, the previous owner can redeem or repurchase the home within a period of time after the foreclosure (Alabama is 12 months). This would definitely put a crimp in any plans to repair the home prior to the expiration of the redemption period. Not a problem in Arizona though.
- The foreclosure of a home in Arizona should clear the Title of liens. The deed will be conveyed as a Special Warranty Deed. If you sell the home later, it will transfer as a General Warranty Deed. You still want Title Insurance just to be safe.
- Don’t expect the bank to do any repairs. They sell foreclosure homes in ‘As Is’ condition. Rarely are they negotiable on this unless it has a poor roof condition that will affect the appraisal. Even then it’s not a sure thing that they will do the roof repair.
- Don’t expect any disclosures on the foreclosed property. The bank will disclaim any knowledge about the home or it’s condition, past or present. This is why a home inspection and a Title search are so important. You may want to go beyond the home inspection and order special inspections, i.e. roof and HVAC systems.
- The bank will have it’s own way of doing things. They will probably demand to use their own purchase contract which will not be favorable to you and even may insist on using it’s own title company. A common clause in any banks contract will penalize/fine you for not being closing on time yet no such penalty exists for the bank. Expect a longer closing time-frame than normal and possible delays.
As you can see, buying a Sedona foreclosure home may be a bit more work than a regular home purchase. It can be worth it though at the right price if you don’t mind doing repairs or hiring a contractor. We have the experience in foreclosures to help guide you through the maze of buying a Sedona foreclosure home and point out some of the pitfalls.
Call us today if you are interested in exploring these types of homes and we’ll set you up with a custom MLS foreclosure home search. 928-451-6098
Here’s the Sedona foreclosure homes available at the moment.
Here are the foreclosure homes throughout the Verde Valley communities.