High Foreclosure Sales Help Struggling Contractors in California

There is another upside to the consistently high rate of foreclosure in California. Struggling construction contractors say they are given jobs and revenues because of the rising demand for their services. Many investors and buyers of foreclosed homes end up renovating or remodeling the exterior and interior of the foreclosure homes they purchase. This makes small and independent contractors busy these days.

Market observers assert that fixing up of foreclosed homes facilitates a welcome relief amid a depressed housing market. The contractors provide much sought-after construction services. At the same time, overall sales of stores and retailers that sell building appliances and supplies tend to rise.

Most contractors say that most of their clients are Real Estate agents. There is a need to make sure foreclosed homes are attractive enough to be purchased by potential homebuyers. Thus, agents usually decide to shoulder remodeling and renovation projects to beef up foreclosed properties that they put up for sale. Such agents also usually keep contacts and business relationships with contractors that are based in the area where the foreclosure homes are located.

In California, it is a standard that foreclosed homes by banks are sold ‘as is.’ Bidders usually are allowed to look into the properties on the exterior. They are not normally allowed to get inside. Thus, when a buyer purchases a foreclosed or repossessed home from a bank, it is more likely that he would need to spend in remodeling or renovating the interior.

The extent of construction would depend on how much work is needed and what part of the home interior would be re-phased. For instance, renovating and reconstructing an entire kitchen is common in the state, because many foreclosure homes surprisingly have code violations, wherein kitchen interiors were constructed without proper clearing and permits.

The demand for services of contractors is a welcome note for many people who need employment in the area. Observers note that many contractors employ individuals who have been laid off in their previous employments or who have not found or taken a new job recently, because of rising unemployment. Some working students are also working for such contractors.

It is expected that foreclosure in California would remain high for at least several more months. Meanwhile, contractors could expect to enjoy the numerous opportunities that come their way.

For more insightful information about US foreclosures, visit www.foreclosuredatabank.com.