Advantages And Disadvantages Of Selling Pre Foreclosed Properties: Foreclosures For Sale Essentials

Foreclosed and pre foreclosed properties can give you profitable earnings

. Take note though that the amount you earn can still depend on a number of things. Before taking your time browsing through home foreclosure listings and buying/selling foreclosures for sale, learn first about the advantages and disadvantages of the pre foreclosure sale and foreclosure sale below:

The Advantages

Lower selling price equals bigger profit

People who sell foreclosed and pre-foreclosed houses usually sell at lower prices than the properties actual values in the market. More often than not, those types of properties are sold at the rate of twenty, even up to fifty percent lower than the real market cost. Offering pre foreclosed properties as well as foreclosures, therefore, can bring greater profit into your pocket.

The chance to increase the propertys value even more than the market cost

Take note that most foreclosures for sale require major renovations/repairs. These home foreclosure listings can still be considered an advantage if you know how to cheaply rehabilitate the properties while increasing their values at the same time. Sometimes, your pre foreclosure sale can even be priced higher than the real value of the property, due not only to the low priced house/building, but also to the affordable renovation you were able to do.

Your clients can enjoy lower fees for settlement

Another pro of selling fore-closed and pre foreclosed properties is the fact that you can offer your buyers settlement costs that are more affordable, thus, you can entice those potential buyers to really buy the homes or properties immediately. You see, the owners of many foreclosures for sale usually agree to give lower closing costs, significant reductions in settlement fees, etc, specifically because they want to get rid of the properties early, thus, this is good news to you and to those interested in home foreclosure listings.

The Disadvantages

There are usually unpaid taxes and liens that buyers have to take care of

A common con of a pre foreclosure sale is that you have to consider the fact that there are liens and taxes that are left unpaid that have to be shouldered by buyers. Thus, there are times when you may find it hard to convince your clients to buy pre foreclosed properties. Sometimes, the home owners may also try to hide these unpaid liens/taxes, thus, as a real estate agent, you have to do your research and see to it that you are able to inform your customers of hidden costs.

Some foreclosures for sale have poor conditions

There are many instances wherein pre-foreclosures and fore-closures are not liveable because of the many repairs/renovations that have to be done. Thus, you may find it difficult to sell those homes/properties.

The advantages surely outweigh the disadvantages, right? In general, foreclosed as well as pre foreclosed properties can be lucrative investments for as long as you are aware of both the pros and the cons, the strategies you can use to sell them, and so on.

by: Karen Winton

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