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Bargain Foreclosed Properties

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By : Julie Thompson    99 or more times read
Purchasing foreclosed properties are a sound buy, particularly for developers and investors. The prices of the properties vary between states, but it is easy to purchase many properties at a value lower than current market prices. After the purchase, a developer can then upgrade the property, and place it on the sellerís market for a higher price.

It isnít always the case that the properties undergoing foreclosure proceedings are a sound investment. Local knowledge or even hidden details on the history of the house can dig up facts that make the house prices relatively similar in that area. When this happens, the buyer can be paying more than the market price after the auction takes the commission fees. If market prices are increasing, then the buyer is able to estimate the price that would be beneficial to secure a good deal.

When looking for a first time home, many people turn to foreclosed houses. They are readily available, sometimes increasing in the current economic crisis. Real estate companies offer selective competition between their foreclosure listings to draw in the customers to get the better deals on the properties. To secure a bargain, itís important to follow several guidelines.

Finding financial listings of the properties can bring up an extensive source to search through. However, some of these lists may not be reliable, and could prove expensive to the buyer if the information is not up to date, or may miss out vital information to the property that may hinder the sale. It is important to find foreclosure properties from a reputable source; the real estate companies themselves are usually the place to go. Having a real estate agent who is both qualified and extremely experienced in foreclosure ensures the best deals from the banks or lending company on different properties. Once a suitable property has been found, and the outside information has been discovered, the buyer can then approach the seller of the property and arrange a purchase.

There are different ways of purchasing a property after foreclosure, with auction being the most common. If the foreclosed house is listed for auction, then bids can be placed in the same way as a regular bid for a house. However, in many cases cash must be used upfront, as a loan may be difficult to obtain after the proceedings. A quicker way of obtaining a bargain is through direct sales. Finding the property at the pre-foreclosure stage could save both time and money, as the home owner could be approached before the bank repossesses the property. Negotiating the price direct with the owner may be the difference between a real estate agent or an auction commission, while still saving money for the mortgagee to pay off the defaulted mortgage and still have a sizeable sum left.

The most important guideline is to shop around. Many places offer foreclosed houses, and knowing what, where and when to buy is the key to a wise investment for the future.
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