Foreclosed Homes Can Earn You Money
As a result of the 2008 collapse of the housing market, roughly 10 million homes have been foreclosed across the United States. While this a regrettable number, it has created a boom in the foreclosure auction field. Here at Investors At Auction, we are experts at the foreclosure auction process, and today we wanted to go over a few tips you should keep in mind when considering whether or not to bid on a foreclosed property. Continue reading below to learn more.
- Know the Home Before You Bid: Perhaps the most important step in deciding whether or not to bid on a foreclosed home, is to inspect the property. While you usually won’t be able to enter the property, you can inspect the outside, take a look at the interior through any uncovered windows, and even talk to neighbors to get a little more history about the property.
- Buy the Property Through an Agency: While you can bid on a foreclosed property yourself, we highly suggest that you use an agency, such as Investors At Auction, to help in the bidding process. We will work with you through the entire bidding process to ensure that you are receiving the best possible deal. Bidding on foreclosed homes is a process that most people don’t have a lot of experience with and having a trusted professional on your side can have a huge impact on the entire process.
- Factor in Repair Costs: It is important to remember when bidding on a foreclosed home, that you will most likely have to spend money on repairs. Most foreclosed homes have sat empty for a while and as a result may have incurred damage from fluctuating temperatures, break ins, or actions taken by the previous tenant. Before bidding, come up with a realistic estimate of how much it’s going to take to restore the property, and factor that estimate into how much you are willing to spend on the house. Getting a house for a great price only to find out that you need to spend a large amount of money on repairs is something you want to avoid at all costs.
- Pay Attention to the Neighborhood: If you are planning to use your newly purchased foreclosed home as an investment property be sure that the neighborhood the house is located in is a good one. Invest in areas that promote appreciation, and avoid neighborhoods with a large amount of foreclosed homes as these neighborhoods may still be declining in value.
- Be Patient: Above all else, be patient. If a property seems too good to be true there is probably a reason. First-time bidders will often goes for the first property they feel is the best deal, but often times these properties can turn into money pits. Take some time to evaluate multiple properties, and then make a decision as to which foreclosure is right for you.
If you still have questions concerning the bidding process on foreclosed homes, contact us today at Investors At Auction. We have multiple years experience in the foreclosure market and will help you make the best investment possible.