Mayfair Group: How To Get A Bargain On A Foreclosure?

Mayfair Group: How to get a bargain on a foreclosure

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Investment in a foreclosure can be once-in-a-lifetime opportunity for some because the properties are offered at one-fourth of the market value and it can fetch lucrative annual rentals but it can be risky and time consuming for people who are not aware of the local real estate market. Many buyers unaware of the risks end up buying damaged properties.

In case of a foreclosure, bidding is set up with first preference for the local government and if the government does not invest in the property, the property is opened for people who agree to live in the house and if the house does not get a buyer in ten days, it is opened for investors. It has been found in a survey that 50% of the houses are bought by the owner occupants.

Before investing the true value of the property should be known and buyers can contact HUD to know the actual value of the property or one can contact a local real estate firm to get a bargain.

Tips to assess the value of a foreclosure

Total cost inclusive of refurbishments: Most of the buyers expect the refurbishment costs to be around 20% to 30% of the actual price but sometimes a foreclosure may need more in refurbishments. The value of the property depends on many factors such as market appraisal, negative stigma, bank fees, maintenance charges, taxes, insurance etc. and the budget allocated for buying should include these factors.

House inspection: A foreclosure house should be inspected carefully before buying. The internals of the house should include checks for winterization. The buyer should see the conditions of utilities, wirings, sinks, washer drains, toilets etc.

Mayfair Group provides fully inspected foreclosure properties in Detroit. The features include asset management, refurbishments, relocation of tenant and collection of rents. The service provided by the firm is extremely valuable as it prevents future damages to the house.

Buyers can even contact a local evaluator who will inspect the foreclosure property at some charges.

Landscape of the houses: The house kept empty for long time may have untrimmed trees and bushes which may further deteriorate the condition of the house .One may have to hire a local agent to take care of the garden and the security of the house.

Poorly managed properties: Some properties are empty for long, which may reduce the market value of the house and these properties may suffer from various other damages .It is necessary for a house to look great to attract tenant and a stable tenant raises the value of a property.

A local real estate firm can provide complete property management to the owners and these companies can take care of the internals and externals of the properties. Mayfair Groups local partners in Detroit guide the buyer from the initial stage of selection of properties to sale of properties.

Neighborhood: The house located in an appraising neighborhood may appraise fast as compared to the house which is located in remote area. The house located close to employment centre or a construction site may appraise fast.

It is very important to select the right property and invest after proper assessment of the value of the property to benefit from a foreclosure. One can get in touch with a reliable real estate firm to get profitable foreclosure properties.

by: Bruce Wills

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