Moving into a Foreclosed Property: Tips and Advice
By Stephen Davis
Special to VanLines.com
The recent financial crisis has resulted in hundreds of foreclosed properties being brought into the market. The property values have fallen and for some buyers this has been a once-in-a-lifetime opportunity; the opportunity of buying property at super-low prices. Many real estate agents have received orders from abroad as well, in some cases investors buying more than a hundred houses in bulk.
However, the panicked market means there are chances that your home sale can go wrong. Follow our on buying and moving into a foreclosed property.
It is important that you budget carefully. Low price tags are very tempting, but be alert when offered a low price and don’t get lured into a quick deal. Take time to think. Do you have enough funds for the property? Do you have funds for home improvement work that the house may need?
Most of the cheaper houses usually need hefty repairs before they are livable again. And then you will need the crew for the job too.
Never rely on money that may come from future tenants. You should have funds ready for purchase and repair beforehand.
• Visit the Property Yourself:
It is a very unwise decision to rely on descriptions given in advertisements. Always either visit the property yourself or have a representative visit it on your behalf. Look thoroughly in and around the property to make sure you know what you are paying for.
• The Neighborhood:
Your property is just your house, but your neighborhood is your home. Evaluating the neighborhood is very important. It is not a good idea to move into a place that is surrounded by vacant property. Also, you may not be able to generate profit if the house is overshadowed by widespread foreclosures or high crime rates in the surrounding area.
• Consider Vacancy:
The longer a property has been vacant, the more repairs it will need like roofing or kitchen remodeling. Over time plumbing seals dry out and bugs and insects population increases, so be sure of how much work you house will need before its ready.
• Winter Damages:
Be sure that you have all the information regarding any damages sustained during winter. Do not turn on the utilities until you are sure. Have the pipes checked for any cracks that may have developed during the cold. Leaking pipes will release water into walls causing mold to form. The resulting damage is usually costly to repair.
• Private Inspection:
When banks decide whether or not to offer you a mortgage, they require a home inspection to be conducted. When buying a foreclosure property, you will probably be paying the sum all on your own. Therefore, you have a genuine right to have an up-to-date home inspection conducted. The results of the inspection will give reliable results regarding the state of the property.
• Quick Sale Profits:
Some investors think that just buying properties, doing as little maintenance as possible and then selling property after a few years when the market is favorable will make them big profits. However, they might be in for a big shock. Many communities are concerned about untidy properties and the owners may end up paying hefty fines.
Keeping these points in mind will help you get a better deal - making it easier to move into a foreclosed property. You don’t need to be a moving services professional; just having a few of these tips should help you when deciding on a foreclosed property.