Things that You Should Know Before Buying a Foreclosed Home
Buying a foreclosed home is a good way to either make money or gain immediate equity in a home for many people. If you are just getting started, you need to know all the possible risks that come along with buying foreclosures.
If you are just getting started, you need to learn all the possible pitfalls that come along with buying a foreclosed home. Here are some of the things that you should keep in mind before you get started.
The first thing you need to check when you find a foreclosed home that you think you may be interested in is to go and look at the neighborhood. Don't go any further until you've done this. The real estate slogan ‘location, location, location’ holds just as true for purchasing any type of home. The house may be beautiful, may be grand, but be sure to look at the other houses in the neighborhood. If they are in decline or are in poor condition, your house will be more difficult to sell. An old Golden rule, “You want to be a Chevy in a Cadillac neighborhood” Why? Either your neighbors will bring your home value up or they can bring them down. Unless the neighborhood has some special purpose or meaning to you that brings other value to the table, look for homes that are on the lower level of the average cost in the neighborhood.
Second, check to see how close schools are to the neighborhood your house is in. Does the school have a good reputation? Other amenities to consider are shopping, parks, and possible neighborhood upgrades. Is shopping close by? Is there a neighborhood park for the kids? Is the city going to revitalize this area of the city? All of these issues will have an impact on how quickly you can sell the house and for how much. All of the points mentioned above will either bring value to the home or take value away.
Next, you need to consider how much repair the property needs. Remember, homes that need many repairs are the best opportunities to either make a lot of money or lose a lot of money. Why?
You can find the best deals in two different situations:
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ABOUT THE AUTHOR
Rick Merlini, is a certified professional master builder and real estate sales trainer. He is a two time builder for Extreme Makeover Home Edition, and a record holder for building a 3900 square foot home in 53 hours and 54 minutes. His company, Foreclosure Made EZ can help you with purchasing foreclosed properties. For more information on buying foreclosure homes, visit http://foreclosuremadeez.com