When a homeowner defaults on their mortgage payments, the lender has the right to have a power of sale for the property. This gives buyers the perfect opportunity to save on real estate. If you're looking to have success with power-of-sale home buying, remember these tips.
Be Ready For Renovation
Foreclosure properties are great to buy because they'll be significantly below the market value. However, you can't inspect the property on the inside. You have to buy the home as is, which as you can imagine, puts you at somewhat of a risk. It's thus important to be ready for renovation.
No matter what type of foreclosed property you purchase, chances are there will be issues on the inside. It may deal with the plumbing, electrical systems, HVAC, or flooring. Go ahead and find contractors that can help with this potential renovation, so that you're fully prepared when you do finally walk inside the foreclosed home after its sale.
Look at Comps
It can be hard to determine if you're getting a good deal with a foreclosed property. It's thus in your best interest to look at comps, or homes that have sold recently with similar features and space.
You should be able to access these comps online. Try gathering the prices of as many comps as you can. Then, you can take an average, which can be used as the baseline. If a foreclosed property is well above this baseline, it's smart to keep looking for a better deal.
Hire a Real Estate Agent
If you've never had to buy a foreclosed property before, the whole process may seem intimidating. In this instance, you should just hire a real estate agent who's experienced with tracking down these types of properties. They'll gather a list of foreclosed homes that match your specific preferences and needs using the MLS directory.
They'll also help you assess various properties, even though neither of you can go inside. Their experience and knowledge of the market will ensure you walk away with a great investment. Having this assistance makes this power-of-sale home buying process much easier to get through.
Foreclosed properties are great real estate investments if you know what you're looking for. With ample preparation and help from the right professionals, you can walk away with a great deal. A little planning and research go a long way, so reach out to a local company for assistance.