Basics of Property Management: Screening Potential Tenants

3 Tips For Buying A Foreclosed Home

21 September 2016

Jesse Obrien

You have a lot of different strategies that you can employ when looking for homes for sale. One of the best strategies you can look into is the purchase of a foreclosed home. Buying a foreclosed home allows you to get a home with plenty of value at a fraction of the cost, as long as you go about it in the most reasonable way possible. To make this happen, read on and take advantage of these points below. 

#1: Be Meticulous When Setting Up A Budget 

The budget for buying homes for sale is the most important piece of the puzzle, so make sure that you address this to the best of your ability. Since you are looking into foreclosed homes, this means you need to set aside money not just for the property itself, but for inspections and potentially heavy-duty repairs. In many situations, a foreclosure purchase is a project, so you will need to dedicate the necessary energy, time, and money into sprucing it up to live in personally, flip for profit, or rent out. By understanding completely how much you are willing to spend up front, you will be in a much better position to do this. 

#2: Make Sure That Your Real Estate Agent Is A Foreclosure Specialist

While many real estate agents specialize in showing houses for sale, the foreclosure market is an entirely different beast altogether. As you do your homework and look into the licensed and insured real estate agent that will help you through the process, you will be best served finding someone whose sole focus is foreclosures. This way, they'll be able to do the legwork to find you properties that are available, while also helping you through the red tape and decisions that come with buying a foreclosed home. 

#3: Assess The Different Types Of Foreclosure Purchase Opportunities

There are many ways to go about buying a foreclosure property. A short sale refers to the time period after a homeowner has vacated and signed over the property, while the pre-foreclosure period is when the original owner still controls it. Some homes are also sold in the form of an auction, which opens you up to a wide range of conditions and reasons that the home is being sold. Be sure to work closely with your real estate agent in order to explore all of these options and understand them more clearly. 

Use these three tips so that you can land the best houses for sale once they have been foreclosed on. 

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