It’s no surprise that there has been an increase in the number of foreclosed home over the past year but with this increase there are things to know about which houses to buy and which to walk away from.
- Get it checked out by a professional. It’s as the old saying goes, ‘you can’t judge a book by it’s cover,’ just because you’ve fallen in love with the appearance of a house does not mean it is a good buy. For all you know there could be mold growing beneath the surface or foundation walls caving in. By having a professional inspect the house you can truly know what repairs are in store.
- Remember common real estate logic. Don’t just try to focus on price when looking at a foreclosed home remember other important things such as location, school district, lighting, the local crime rate, and any other reasons that would have caused the home to become foreclosed. Don’t just assume that the previous owners financial troubles were the reason for foreclosure. A few things to take note of are how long the property has been foreclosed and if there are many other foreclosed home in the area as that might not be a good sign.
- Skip the flip. Flipping homes is not as popular as it once was. Many people see great potential when they look at a house but what they don’t consider well enough is the price. If you’re not a pro with incredible contracting connections then the price you believe the house will cost to flip is probably going to be three times that amount. Before giving into temptation talk to a real-estate professional or a home inspector.
- Don’t go over the budget. Fixing up houses can cost you a decent amount, before you buy make sure you have enough cash, more than half, saved up for those fixes. The interest on taking out a loan will chip away at the initial foreclosure bargain.
- Always see it in person before you make a decision.