Selecting the Best Areas From Foreclosure Houses Listings
Selecting the Best Areas From Foreclosure Houses Listings
An investor looking for residential properties to purchase can make his job easier if he takes advantage of the information presented by foreclosure houses listings. However, choosing the right properties to invest in would be his decision. There are certain steps he could take to ensure that he will be investing on real estate items that have the potential to provide him with a lot of returns.
Look for Discounts
The first thing that an investor should consider is the selling price of properties in a given area. The ideal price for a foreclosure property is 20% below the prevailing market value. This means that the investor should research the average price of existing or non-foreclosure homes that are of similar make and size to the foreclosed properties he is interested in within the same neighborhood.
The foreclosure property that he will be purchasing should have a selling price that is at least 20% cheaper than the average price of similar non-foreclosure residences. This price should have already factored in the costs of repairs and fees that will be incurred in the transaction. Among the areas found in foreclosure houses listings, Charlotte, North Carolina and Syracuse, New York are examples of cities that offer considerable purchase discounts.
Long Term Benefits
Another factor that should be considered by investors is the potential investment return that these properties can provide in the long run. They should look at areas that offer the best possible chances of property appreciation. Most of the time, these are cities that have relatively stable economic conditions and whose unemployment rates are not as high as some U.S. areas.
The ideal places for real property investing are those that do not have volatile housing markets. If a particular housing industry experienced sudden increases in home prices during the market boom, it is highly possible that prices will also drop drastically, which does not make for a profitable long-term investment.
Real estate investors should learn how to determine which of the areas in foreclosure houses listings offer the best opportunities for a long term profit. They should always look at future potential earnings and not just evaluate areas based on current market status.