The recent surge of foreclosed properties has disrupted lives of thousands of families, dragged down market values of properties and sent financial institutions into a scramble to keep their heads above water. However, this also provides an opportunity for first time homeowners to purchase foreclosed properties at a very low cost. However, there are certain things that one must do to ensure they are making the most of this opportunity.
Any prospective buyer should first arrange his finances and budget carefully. It would be best to get preapproved for a mortgage so that the buyer knows exactly how much he is capable of spending. Other expenses should also be taken into consideration such as repair costs, surveyor’s fees and other miscellaneous processing fees.
Next, find a local real estate agent that specialises in foreclosures. Having an experienced real estate agent providing property listings and real estate advice will indeed be an advantage. They are more versed about the different processes and can help a buyer assess if the property is a good buy. Furthermore, real estate agents have a vast network of contacts and they might know of available foreclosed properties even before the lender has advertised. A real estate agent can help a buyer study and compare prices of similar homes in the same area.
After finding a suitable home to purchase, make sure to visit the house personally. It should be remembered that the sale for the home is as is, so check to see if any repairs are needed. It would be best to bring a professional surveyor to check the overall condition of the building. Other people have this done once the sale has been closed, but it is recommended to do it before the sale. Though a surveyor’s fee can be a little steep, having the advance knowledge of the possible repairs can help one evaluate if the house is still a good purchase. If there are structural issues with the property this spending could save thousands in the long run. It is also recommended to check the neighbourhood. Any prsopective buyers should evaluate safeness and proximity to schools, the nearest hospital and work.
Once all the necessary steps are taken and the buyer has decided to purchase the house, a notice of offer must be submitted to the bank. A trusty real estate agent can help ensure a smooth transaction and can also help protect your interests throughout the transaction. Others opt to avail the services of a real estate attorney in closing the sale. Alternatively, if the home will be sold in an auction, necessary steps should also be done to prepare for the bidding.
Buying a foreclosure property can be a very good investment. However, for it to be truly profitable and cost-effective, you should carry out ample preparation and research to ensure that you are truly getting your money’s worth.
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