Today it’s possible to make excellent real estate investments. Potential home buyers can choose from a wealth of low priced foreclosed homes. Those seeking Houston real estate opportunities can uncover superb value when they know which pitfalls to avoid. There are many mistakes of foreclosed home buying that savvy purchasers can avoid. Inner loop Realtor Bill Edge will help you find the gems and avoid the quagmires.
Here are Bill’s foreclosure secrets and tips that will protect you and your family from hidden ensnarement:
1) Avoid run down properties. Perhaps you or a friend believes they have the knowhow to do a multitude of repairs. While such multi-talented people do exist, they are few and far between. Even superficial repairs such as installation of kitchen cabinets or ceramic tile will look shoddy and unprofessional unless the installer does meticulous work. For all finish work it’s best to hire an expert. In many of these homes there are problems with basic systems such as HVAC, plumbing and electricity. Repair or replacement can be extremely costly. It is easy to go bankrupt when you purchase a fixer upper you cannot afford to fix, so it’s best to buy a property that is in good condition.
2) Consider HUD Foreclosures. Many inexperienced buyers pass up HUD foreclosures in good condition and instead choose to buy the most run down property in Houston. Usually about a year later, these homes reappear on the market. In many cases they have been 90% repaired. When a buyer doesn’t understand the TRUE cost of repairing the home, they frequently run out of money. The home is AGAIN foreclosed and goes back on the market. Now it may have a marble counter top, brand-new stainless steel appliances and a gleaming renovated bathroom all this while structural flaws are in evidence. All this horror can be avoided by purchasing a well maintained HUD foreclosure.
3) Search for a Foreclosure in good to excellent condition. Buyers who get the best value in a home are those who purchase real estate requiring little more than cosmetic repairs such as carpet, paint, and appliances. Many existing wooden floors can be updated by refinishing and good quality kitchens can be integrated into more contemporary styling.
4) Consider Fannie Mae. A run-down home is ultimately a lose/lose proposition. Many times government agencies such as Fannie Mae will make repairs to their property. Fannie Mae knows the property will bring them a lot more money if it will pass an FHA inspection and sell to an owner occupant instead of an investor. This also means that it will sell more quickly. You can find a home where the seller has put in new carpet, paint, done some structural work, and added new appliances. The home becomes literally ready for you to move into.
5) Bring an expert when viewing a foreclosed home. You can uncover what work is needed to bring it up to your standards. An Infrared inspection can be relatively low cost, yet reveal hidden problems such as energy leakage, water damage and mold. Most foreclosures are vacant but some are occupied, sometimes by previous owners distraught over their loss. Former owners who feel victimized by their mortgage company may feel vindictive and cause property damage as they leave.
6) When making an offer on a foreclosed home, always make it contingent on a satisfactory home inspection. While the purchase price may be low, renovation costs may be sky high. Consider the total cost when making a decision to purchase.
7) Consult a Foreclosure expert. It costs NOTHING to consult with a foreclosure expert – a Harris County Texas foreclosure expert – like Bill Edge. Broker fees are paid by the seller and not the buyer. You deserve to have the best representation.
8) Review all options to get the best deal for your money. There are three types of homes for sale: foreclosures, re-sale homes, and new homes. An informed buyer is a smart buyer. Your inner loop realtor, Bill Edge will help you find a home that satisfies your specific needs at the best price with the fewest repairs.
Call Bill at (713)240-2949, or email him now at email@example.com and request a free home buyer’s consultation. Bill loves to help people on their journey to home ownership and is eager to answer your questions.