How To Get a Great Deal on a Foreclosed Property

The Housing crisis has left several opportunities to purchase homes at bargain prices. Here are some tips on how to do just that:

Get a list of foreclosed properties

Usually each bank will have a complete list of foreclosed properties in the area that are under their ownership. There are also online mailing lists that you can sign up for that will give you weekly updates on foreclosed properties in your area.


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Do Your Research

This is possibly the most important step. Do a thorough review of all the properties on the foreclosure list that you are considering. Pay attention to how long it has been foreclosed upon, its price history and the institution that owns the property. This information will be very valuable as you enter the next steps.

Visit the Property

Once you narrow down your wish list, make an arrangement to take a look at the property. Make a checklist of things that you expect from the property (i.e  new windows, tiled floors etc.). It would be advisable to visit the place with at least one other person. Often times a friend or relative is able to see things about the property that you may not notice at first glance.

Decide On a Strategy

This is where you decide whether to buy the property and resell or whether you have other desires. Some buy the property to remodel and then resell, a process known by many as “flipping”. Some simply buy the property, fix it up and rent it out. Regardless of what strategy you choose, make sure that you have a plan on what you want to achieve and how you will go about getting it done once the property is yours.

Bargain

Although foreclosed properties tend to be significantly less than their market value, there is still room to negotiate. Lenders that have these properties typically are in a hurry to get rid of these properties just to recover what has been lost. They are usually willing to negotiate a less than ideal price just to get the property off of their hands. Don’t be afraid to haggle.

Get Financing

Now that you have done your research on the property and know exactly what kind of strategy to pursue once you have it, now you are ready to finance it. Often times the best firm to get financing from is the firm in control of the property. Take your time and shop for the best mortgage rates around to get the best deal.

Article brought to you by OpenOffer.com a real estate resource for Rancho Santa Fe homes in San Diego County.

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