Home Foreclosures – Deal or No Deal?

According to Irvine, a California-based data seller, 2.87 million properties got notices of default, auction or repossession in 2010. For the homeowner, this could be a very unfortunate scenario. For the investor, it can spell huge profits. Whatever the case, home foreclosures can be a major opportunity to purchase homes at 30% off the regular value. Now the question is, how do you know you’ve found a good deal?

Things To Consider When Buying Home Foreclosures

There are drawbacks to a foreclosed property. Most often, it stems from a simple neglect of important details, the buyer being blinded by the huge savings it offers. But with some research and a lot of diligence you can factor in all important aspects and still come up with a good deal. When looking at home foreclosures, consider the following factors:

1. Maintenance

Make sure you are able to actually view the home before and have it inspected before buying. Make sure to check for functioning utilities such as power, water and cable. Should you decide to purchase the house, discuss with the seller if the services can be activated immediately and if there are pending payments due for these utility companies. Molds and pest infestations are huge factors to consider, too. Pests infestation, for instance, renders the house less stable which makes it a concern for health and comfort. Although most homes are sold ‘as is’, you should not settle for anything that would put your family in danger.

When shopping for home foreclosures, real estate tax must be factored in

Photo Courtesy of Phillip via Flickr

2. Taxes

Investigate the property and find out if there are any liens against the home and who is responsible for paying them. Many people skip this step and find themselves responsible for paying someone else’s liens once the sale is final.

3. Location

It is also important for the house to have access to main roads, and that the place is convenient for both car owners and commuters, too.

4. Crime Rate in the Area

Safety should be a priority so make sure to choose a home that is in a safe neighborhood.

There are several things that you need to do prior to buying home foreclosures. For one, you must do your homework and research on the updated lists of foreclosed properties in your area. check with local real estate brokers for their lists, call real estate offices, or search online. search from there. Banks and government agencies can also be great sources of home foreclosure information.

Home foreclosures may not always mean they’re the best of deals but will always be a favorable option and an opportunity for you to buy a home at a great deal.

Related Posts Plugin for WordPress, Blogger...

Filed Under: Foreclosure


About the Author

Comments are closed.