Given the state of the housing market in America at the moment, houses are being foreclosed on in record numbers. It is a situation that does not appear to be improving any time soon. In the midst of all the bad news, prospective homeowners looking to purchase a new home could stand to land some really nice deals in the foreclosed market. With a few guidelines in place, purchasing a foreclosed home could represent a good investment.
Pay careful attention to your budget -- Don't be lured into a quick sale simply because you see a relatively low price. Does the house require any major renovations or repairs and is it within your budget to take care of them? If you are planning to renovate and rent out the home, how will you be impacted if you don't find a tenant as soon as you expect? Be deliberate about asking yourselves questions like these, and you will greatly decrease the risk associated with your purchase.
Inspect the neighborhood -- The value of your new home will be significantly impacted by the area in which it is located. Is the area run down? What are the crime figures like? Are there high-quality schools in the area? Make a point to survey the neighborhood both during the day and at night to get as good a sense as you can of how appealing it is.
For what length of time has it been empty? -- The greater the length of time that a house is unoccupied, the more damage you can expect to have to address. If a house has not been moth-balled effectively, it can lead to a lengthy list of problems. Sewer gases can accumulate as the plumbing becomes dried out, and before you know it you have a house that has a major bug problem. Always aim for houses that have been recently occupied and well taken care of.
The outside aesthetics -- What condition is the landscaping around the house in? Trees, bushes and vines that have not been trimmed for some time not only start to look ugly, but they can also accelerate the degradation that a neglected house and property are at risk from. Vines can damage window panes, and root systems can do serious damage to paving and foundations. Visually appealing landscaping is indicative of a property that has been taken care of.
Bring in a private inspector -- An experienced and professional inspector is skilled at spotting areas of concern in a house and property. The average person with untrained eyes will typically tend to overlook any number of serious issues which can undermine the value of a house. When making a purchase/investment of this magnitude, you simply cannot afford to take any unnecessary risks. Remove as much uncertainty from the equation as is possible by having a thorough inspection conducted.
Look into HUD options -- The Department of Housing and Urban Development is in possession of many thousands of houses that become available for sale approximately six months after they have been foreclosed on. First purchasing options are offered to local governments. Afterwards, buyers who are committed to living in the house are provided with the first chance to put in a bid. After 10 days with no sale taking place, the house is then made available to investors.
If you are in a position where the purchase of a new home is a serious consideration or a definite intention, it's worth your while to take a look at the many foreclosed house options that are available. If you make the effort to do your research and to make informed decisions, you could well be enjoying an amazing real estate investment that has been secured at great value.
If you would like to read more on the housing market, please visit our blog at www.mycaal.com.
Pay careful attention to your budget -- Don't be lured into a quick sale simply because you see a relatively low price. Does the house require any major renovations or repairs and is it within your budget to take care of them? If you are planning to renovate and rent out the home, how will you be impacted if you don't find a tenant as soon as you expect? Be deliberate about asking yourselves questions like these, and you will greatly decrease the risk associated with your purchase.
Inspect the neighborhood -- The value of your new home will be significantly impacted by the area in which it is located. Is the area run down? What are the crime figures like? Are there high-quality schools in the area? Make a point to survey the neighborhood both during the day and at night to get as good a sense as you can of how appealing it is.
For what length of time has it been empty? -- The greater the length of time that a house is unoccupied, the more damage you can expect to have to address. If a house has not been moth-balled effectively, it can lead to a lengthy list of problems. Sewer gases can accumulate as the plumbing becomes dried out, and before you know it you have a house that has a major bug problem. Always aim for houses that have been recently occupied and well taken care of.
The outside aesthetics -- What condition is the landscaping around the house in? Trees, bushes and vines that have not been trimmed for some time not only start to look ugly, but they can also accelerate the degradation that a neglected house and property are at risk from. Vines can damage window panes, and root systems can do serious damage to paving and foundations. Visually appealing landscaping is indicative of a property that has been taken care of.
Bring in a private inspector -- An experienced and professional inspector is skilled at spotting areas of concern in a house and property. The average person with untrained eyes will typically tend to overlook any number of serious issues which can undermine the value of a house. When making a purchase/investment of this magnitude, you simply cannot afford to take any unnecessary risks. Remove as much uncertainty from the equation as is possible by having a thorough inspection conducted.
Look into HUD options -- The Department of Housing and Urban Development is in possession of many thousands of houses that become available for sale approximately six months after they have been foreclosed on. First purchasing options are offered to local governments. Afterwards, buyers who are committed to living in the house are provided with the first chance to put in a bid. After 10 days with no sale taking place, the house is then made available to investors.
If you are in a position where the purchase of a new home is a serious consideration or a definite intention, it's worth your while to take a look at the many foreclosed house options that are available. If you make the effort to do your research and to make informed decisions, you could well be enjoying an amazing real estate investment that has been secured at great value.
If you would like to read more on the housing market, please visit our blog at www.mycaal.com.