Evaluating the Resale Value of Homes in a Foreclosure List
Evaluating the Resale Value of Homes in a Foreclosure List
A buyer looking for homes in a foreclosure list should not only choose properties based on price and location but also on the possibility of getting a good value for the property in the future. Sometimes, although a buyer is purchasing a home to use it as a family residence, unforeseen developments force him to sell it and when this time comes, he should be able to get a good value for his house.
Why Homeowners Sell
A family sometimes finds the need to sell their homes due to changes in their personal lives or in their finances. A divorce, children moving out of the house once they have grown and financial troubles are just some of the reasons why homeowners find it necessary to sell their properties. In all cases, a homeowner should make sure that the house gets a value that is at least commensurate to the condition of the property.
Criteria for Evaluating Resale Value
Evaluating the potential of homes in a foreclosure list to fetch a reasonable resale value requires a look at a number of criteria. First is the location. A home located in a good neighborhood with a stable economy will have a better chance of getting sold for a reasonable price. Areas that do not suffer from fluctuations in housing prices are more likely to stay stable economically for a long time.
Another factor to consider is the type of home. A single family dwelling is the most common type of residential property in the U.S. and majority of home buyers favor this type of dwelling. Another factor that could affect a home's future price is its design plan. A simple plan that does not entail removing a whole room or area to create bigger spaces is always highly favored by buyers.
When choosing homes from a foreclosure list, the buyer should make a short list of the properties that satisfy his criteria for price, location and resale value. Inspecting each home before making an offer is important, so it is advisable to narrow options to a maximum of five houses.