Buying and fixing up a foreclosed home can be one of the most financial and personally rewarding experiences, but also can be quite stressful if you are not clear about what you are getting yourself into. Use our lightning fast and daily updated MLS search to help you find that perfect real estate investment.
1. How long has the property been vacant?
– Determining this can have a significant impact on the number of issues with the home including frozen water pipes, issues with heating due to stale gas lines, possibility of mold, ect.
2. Items missing:
– Commonly disgruntled owners will remove cabinet knobs, A/C vents, window treatments, ect.
3. Damaged items:
– If a home has been vacant for a while, you may have issues with vandals or in some rare cases homeowners that are frustrated that they are loosing their home take it out on the property.
4. Landscaping:
– In the majority of foreclosed homes, the landscaping and yards have been neglected. While many are mowed periodically, contractors realize that the home is vacant and even told to simply knock down the overgrown grass to avoid code violations for the bank.
Nearly all issues with any property can be overcome if they are known before closing. Provided you know of the repairs needed you can adjust your offering price or repairs completed before closing. In most instances banks will not repair other than what is necessary for the home to be financable. This is why a very thorough home inspection needs to be done to determine exactly what will need to be done to get the property up to your standards. It is highly recommended that buyers work with a licensed real estate agent to help buyers assess cosmetic repairs, provide rough estimates of repairs, estimate value after repair, and recommend reputable contractors.