subject: Short Sales Education - Top Ten Tips To Buying Foreclosures [print this page] The numbers of reported foreclosures nationwide hit 2.8 Million in 2009. The number of foreclosures for sale is astounding and although there are many opportunities to purchase a foreclosure for a huge discount, buyers should be aware of the issues that may come from these distressed properties. Any buyer of a foreclosure should practice sound investment practices otherwise they may be putting their money into a potential money pit.
If you are looking to purchase a property via a short sale, here are the top tips to following while you are shopping for a foreclosure.
1. Do not catch yourself in the foreclosure craze
Every foreclosure is not a good investment. Do your research and make sure you set an offer price that is still under current market rate, with adjustments to its condition.
2. Determine the type of foreclosure you can buy
The ability to determine what type of foreclosure you can purchase is based on your financial constraints. There is the choice to purchase through traditional financing, all cashed, or owner financing.
3. Get your finances in order
When deciding to purchase a foreclosure, you should always have your finances in order for the fastest close possible. Doing so will allow you the best position over other offers.
4. Join with Contractors to Find fixer uppers
That fact that foreclosures can yield significant discounts; it is a great opportunity to look for fixer uppers that can be turned around for a profit. It is highly advised to partner with a contractor so that you are assured that you are being provided the proper inspections and accurate costs to fix up the property.
5. Get professional advice
Never take any short cuts when purchasing a high valued investment such as a home. Do not try to cut corners and get free advice as it could lead to costly mistakes.
6. Make an offer below Market Price
Dont get caught up in a bidding war and over pay for a home no matter how much you like the home. If there is a bidding situation, you will never be able to beat an unrealistic buyer.
7. Verify a clean title
If you are purchasing a home through a public auction, you will not have enough time to research whether or not the property has a clear title.
8. Contact banks or agents
If you are interested in purchasing a foreclosure, build your network of real estate professionals to help you identify foreclosures in the areas you are interested in buying.
9. Inspect the property
Always, always inspect a property before purchase. Distressed homeowners are also known to defer maintenance on their homes and sometimes commit damage to the home before leaving.
10. Have patience
Do not get discouraged if you are not able to purchase a foreclosure immediately. Do not rush any transaction without performing the proper due diligence.
