Individuals looking to purchase a house or a property may be lured in by the price tag placed on a foreclosure. Foreclosures are usually real estate properties that have been taken over by mortgage banks because of an individual’s inability to pay back the loans they have previously borrowed. Usually, foreclosures may sit on without being sold for a long time and without being maintained. What this means is that the overall value of the house may have deteriorated over the period it has been sitting empty. It therefore is pertinent that prospective home owners or investors looking to buy a home know this and prepare themselves for repairs they would have to undertake. Some of the tips in buying a foreclosure are discussed below.
- Endeavor to check out the house yourself
Well, this is one advice prospective home owners or investors need to take before going ahead to seal the purchase deal. There shouldn’t be any argument about this. Make sure you see the house, walk into it, check out the level of damages, and go into all rooms in the house so as to mentally have a picture of what amount of money that would be required to put the house in order. If you are unable to see the house in person, then ensure you get a trusted individual to do that on your behalf.
- Look at the neighborhood
Your neighborhood also constitutes how comfortable your stay in the house would be if you’re buying for personal use or how fast the house will be sold off and how much gain you would make if you are buying as an investor. As such, prospective home owners or investors looking to buy a house should consider evaluating their neighborhood to see how comfortable it would be for them. The neighborhood should be studied both during the day and equally at night. If the neighborhood has a high criminal rate, your best option should be to run away from it.
- Consider the Period of Time the House has Been Empty
The longer the period of time the house has been empty, the more damage to the property. Termites would be in the furniture eating up everything, spiders would be all over the room spinning their cobwebs from one end to another, dusts would have covered the whole house, ants would have made their homes in the ground and grasses would have overgrown and covered the entire compound. This essentially means there would be more money to be spent in renovating and putting the house back in order.
- Contact House Inspectors for a private inspection.
Before finally making a decision to purchase the property, there’s the need to contact a specialist for a private and comprehensive inspection of the property. Your previous inspections are you’re your own view of the building. A private inspection would reveal a whole lot more damage. This would enable you to have a close up idea of the amount it would take to renovate the entire building.