Buying Repossessed Properties Like A Pro

It is fact that buying repossessed properties come with certain risks

. If you are just starting your foreclosure investing business, you should certainly make an effort to do what the professionals do. It would surely work to your advantage if you identified such risks and find out what you can do to manage them in case you find yourself in such a situation.

Risk #1 Hidden Problems with the Repo Homes Physical Condition

The biggest risk a buyer will have to face when buying repossessed properties is finding out too late that there are numerous problems with the property in terms of its physical condition. It is not surprising if the seller will not tell you of such problems because of two reasons: they probably are not aware of them or they would not want to settle for a low selling price. In any case, it is your responsibility to have the home professionally inspected before making any deals with the seller. If there are indeed hidden defects, you can always negotiate with the seller. They could agree to lower the list price or shoulder the repair costs.

Risk #2 Undisclosed Secondary Liens

Although it might seem unfair to buyers, some sellers practice their right not to disclose other encumbrances and liens attached to the property. This is perhaps the reason why it is important for buyers to have the title of the property checked for such information. This way, you avoid having to deal with creditors, who could really cause you much inconvenience, even if you were not the one who is indebted to them in the first place.

Risk #3 Home is Priced Too High VS Market Value

There are plenty of buyers who make the mistake of not doing comparable market studies when buying repossessed properties. It is certainly understandable if you get excited but you still should do due diligence. Most of these homes are sold at huge discounts but without checking out the propertys current market value, you would not see just how much you really saved.

by: Joseph B. Smith

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