Skip to main content

BUYING A FORECLOSED PROPERTY: WHAT YOU SHOULD KNOW

When shopping for a home, many buyers look for a bargain. Some will look at foreclosures believing that they can buy a foreclosed home at a discount. 

While purchasing one of these homes may seem like a sound investment and a great way to get more house for your dollar, there are some issues to consider before purchasing a foreclosed property.  

Depending on your financial situation, your experience as a homeowner, and your access to information about the foreclosure market in your area, there are some risks involved.

Finances Of Foreclosure

The financial considerations of purchasing a foreclosed home can sometimes be overlooked.  Often foreclosed homes can be in need of considerable maintenance and repair to make them habitable.  You need to know this cost when making the purchase, or you may end up with a considerable amount of debt in bringing your home back to its original shape.  Also, even though the price of the property is right, there are other financial considerations you may not have considered.  

The cost of maintaining a home, property taxes, and utilities are all expenses that may be greater than your budget will allow, especially if you are purchasing a home that is much larger than your existing home or if you are unfamiliar with the costs associated with home ownership.  There is also the consideration of your ability to pay for the purchase.  Often foreclosed properties must be paid for in cash, so be sure you have the available credit.

Knowing The Facts

The process of purchasing a foreclosed home can be much more time consuming and complicated than a normal real estate transaction.  If the sale is occurring because an eviction notice has been served or if you are purchasing the property at auction, you may not be able to inspect the house before purchasing it or you may have to deal with some issues to get the current homeowners out.  

There is also the issue of not knowing the condition in which they have left the home.  You will want to be sure you get the advice of both a real estate agent and a banker to ensure that your purchase is both a good investment and will increase in value over time.

Overall, purchasing a foreclosed home can be a great way to enter the income property market or find yourself a great investment opportunity, but being sure you have all the facts can prevent you from making a poor investment decision.

Comments

Post a Comment

Popular posts from this blog

SPRING ROOF INSPECTION

The roof is the one thing between your home and the elements... doesn’t it deserve a little respect?  Here are some roof maintenance tips to preserve your home’s value. Ah, the humble roof. We forget that the single most important structural element in our home is the roof. It provides shelter for those we love and the things we value. It’s easy to let maintenance slide on something we take for granted. With better weather days upon us, now is a good time to inspect the roof and make sure it’s up to the task of protecting your home’s value. Here are some crucial elements you’ll want to look for during a roof inspection: Are the gutters clean and in good shape? Organic debris building up in your gutters can cause water to pool and foster an environment for roof rot. Do you see any curling around the bottom edges? Are there any gaps or holes in the soffit? Are there surface cracks in shingles? Cracks warn you of impending disintegration or sepa...
Post a Comment
Read more

A SPRING SPREAD ANY BUNNY CAN CREATE

  (Culinary.net) With spring in the air, it’s the perfect time to invite guests over for a hopping party. It’s also a great opportunity to tackle that dreadful spring cleaning and spruce up your living spaces with vibrant decor for visitors to enjoy alongside a delicious recipe. With this sweet, colorful table arrangement, your whole family can get into the spring spirit. From festive utensils, a bright centerpiece and cute snacks, your spring setup can be fresh and fabulous. It’s simple to put together and easy on the budget. Pair it with appetizers or even a main dish for a full spring party spread that’s sure to impress. Find more springtime recipes at Culinary.net . Watch video to see how to create this Spring Table Spread! Chick Cheese Balls Recipe adapted from Hallmark.com Yield: 10 chicks 1  package cream cheese 1/4  tablespoon garlic powder 1  tablespoon Worcestershire sauce 1/2  lemon, juice only salt, to taste pepper...
Post a Comment
Read more

BUYING YOUR FIRST HOME: SEVEN TIPS FOR FIRST-TIME HOME BUYERS

Now that you've made the decision to purchase your first home, a hearty congratulations is in order!  Becoming a homeowner, especially for the first time, can stir up some feelings of anxiety and excitement.  With the knowledge that you gain through individual research and the help of your REALTOR®, you will soon begin to feel like a seasoned house hunter. Tip # 1: Do Your Homework Did you know that there are a number of incentives available to first-time home buyers? In Canada, there is the First-Time Homebuyers' (FTHB) Tax Credit. The Government of Canada introduced a FTHB Tax Credit in 2009 — a $5,000 non-refundable income tax credit amount on a qualifying home acquired after January 27, 2009. For an eligible individual, the credit will provide up to $750 in federal tax relief starting in 2009. Another incentive is the Expansion of the Home Buyers' Plan (HBP). To provide first-time homebuyers with greater access to their RRSP savings to purchase or build a...
Post a Comment
Read more