The confiscated house is sometimes a tempting object when people are planning to buy a new home. The main factor that makes it look ‘sexy’ in the eyes of potential buyers is the price offered. Foreclosed homes are usually sold cheaper than the general price offered. In fact, not infrequently the price is only fifty percent of the original price. However, that does not mean there is no risk as all the confiscated houses once dealt with the law before those was finally sold. If you’re aware of all possible risks, you can even buy foreclosures today!
Here are 5 smart steps to buy foreclosure homes, so you get the best benefits and minimize the risk behind:
Find out the current list of confiscated homes
Usually “the Land Office” and local banks regularly announce any home or property that is confiscated. The list of confiscated properties is generally included in the list of auctions that can be followed by a wide audience. Even now, some lists of confiscated homes also appear on some related sites in cyberspace. Furthermore, you are expected to be smart in sorting through them.
Use the services of a property agent who knows the sale of confiscated houses
Some well-known property agents have created specialized services that deal with confiscated property trading. When you use their services, then you will get a pretty clear understanding of the good&bad of buying confiscated houses. You will also be given suggestions that allow you to get your dream confiscated home at its best price and also at minimal risk. However, the price you have to pay for can’t be said cheap, but it would not hurt if you want to try.
Understand carefully the decision to buy a confiscated property
The best way to buy a foreclosed property is to buy it directly in the bank but it might be difficult to get access to the auction. You might be given only one choice; a unilateral price benchmark.
But no need to worry as you can get rid of the risk of getting the property directly from the first hand that has the authority in seizing the property. The good news is that some banks today provide the opportunity to pay by mortgage loans, but with special conditions behind.
Practice the basic formulation of choosing a property
The basic formula in buying and selling property is very important to note. Even if you managed to buy a confiscated house at competitive price and at small risk, but if it turns out the surrounding environment or accessibility are not good enough, your purchase will seem “futile.” Pay attention to the location, accessibility, home conditions, and other important parameters to get the most benefit from the property you buy.
Prepare renovation fund
It is almost impossible to find confiscated houses in a really good condition, as they will usually be sold to the public about one to two years after they are officially confiscated. In that time period, the confiscated homes do not undergo any checks or repairs, as usually “the auctioneer” does not want to take care of their physical condition. Therefore, it is natural that you need to prepare funds for the renovation, at least 10 percent of the total funds you are preparing to buy your dream foreclosed property.
