It's no surprise that buyers are looking for a bargain - but now, even more people are showing interest in the growing foreclosure market. According to Trulia.com and RealtyTrac, a recent survey shows that 55 percent of U.S. adults are at least somewhat likely to consider a foreclosed home when buying real estate. That's nearly a 10 percent increase from November 2008.
However, many buyers are a bit leery of foreclosures. Approximately 85 percent said they can't identify negative aspects of the properties. Among the top concerns are hidden costs, a risky process, and further de-valuing of the foreclosed property.
Buying a foreclosure doesn't have to be a scary and unknown process if you take the right precautions. Inspect before you buy is a good motto for any real estate transaction, but even more so with a home that has been foreclosed and possibly sitting vacant for long periods of time.
A big concern is when the previous homeowners used various items in the home as replacement for something that had broken because homeowners who are facing foreclosure frequently cannot afford to fix something in the home, they go without it. But that can cause more problems. On the other hand I have seen a lot of properties that the owners have intentionally let the property go. Some have gone as far as pulling out appliances and even light fixtures.
The best thing you can do if you're considering a foreclosure is to have it inspected. Just make sure that the property is ready to be inspected or you could be doing yourself a huge disservice.
Have all of the utilities turned on before they arrive, because that's when you might start seeing things that are wrong like leaks and electrical problems. You could see problems with the heater or the water heater, ovens or cook tops that use natural gas.
Seeing is believing and, with inspections, the only way to know for sure is to have everything operating so you can gain the most knowledge about needed repairs.
If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125