Pros And Cons Of Buying Foreclosed House

Pros And Cons Of Buying Foreclosed House

Buying a foreclosed house can be a great investment but it might have some disadvantages as well, contact a realtor to make you visit some foreclosed houses that meet your requirements. Here are a few pros and cons of buying a foreclosed home;

Pros of Buying a Foreclosed House

  1. Much Discounted Price

One of the main advantages of buying a distressed home is that they are available in much-discounted price than the house that isn’t foreclosed. According to the researches, distressed houses are found to be 5% lesser than their original value. It’s like you can buy a house that isn’t foreclosed in the same area and would have to pay 5% extra money. This is a great advantage as you can save money without worrying about the renovation of the property as the bank owning the property gets its renovation done so you get the house in perfect condition. Previously when these foreclosed houses were sold 15% lesser than their original value, they were found to be in the worse condition and the buyers had to spend a lot of money on the house’s renovation.

  1. Pressure on the Seller

If the buyer’s agent shows you a property that is in the stage of pre-foreclosure then your bargaining power would be much greater as the homeowner would want to sell the house as soon as possible before it gets completely foreclosed. In such a situation, you could take a licensed home inspector to check the house and help you in making your final decision. In such urgent conditions, the homeowner is pressurized and usually give huge discounts to the buyers in order to avoid the mark of foreclosure.

  1. Lesser Mortgage Payments

If you buy a foreclosed home under the limit you set for your budget then it is for sure that you would have to pay lesser monthly mortgage payments which is a great reason to consider buying a distressed house.

  1. You Can Find Your Desired Neighborhood

Living around the people you like and understand is extremely important. Buyer’s agents have a huge list of foreclosed properties in almost every area so tell your realtor about the type of neighborhood you want and if you find one that is suitable for you then don’t waste time and jump in.

  1. Property’s Title Is Clear

Buying a foreclosed house gives you relief from any hidden taxes or liabilities. Every bank-foreclosed house is clear from any sort of taxes, mortgages, and liens. All these payments are done legally, and you just have to care about the property and its condition. Buying a distressed house means that you are investing your money in a clear titled house.

Cons of Buying a Foreclosed House

  1. Hidden costs

If you choose to buy a house that hasn’t been foreclosed formally and is in stages before that then the liabilities and costs would be inherited, and you would have to pay all the unpaid taxes and equity lines that can cost you a huge amount of money.

  1. Quite Daunting For Beginners

If you are a beginner real estate investor then you should not go with the foreclosed house as it can trick you and you might get confused in making decisions and handling all the stuff of real state and the bank. However, if you are still interested in buying a foreclosed house then there are many buyer’s agents out there, visiting one of them might help you in the process.

  1. Banks Don’t Negotiate

You should keep this in mind that banks always try to make most of their foreclosed properties, and they don’t care about your emotions and situation. All they want is money, they won’t pay heed to any of your negotiating offers. If you agree with their set price then they’ll be fine otherwise they have many buyers in the queue.

  1. Timeframe Is Short

When you buy a foreclosed property through auction, you would be provided a very short timeframe to gather your funds and clear the payments for the house which sometimes gets stressful for many people.

Both you and your buyers agents washington dc should know these basic pros and cons of buying a foreclosed house in order to stay safe from any sort of damage caused later in the future.

8 Important Things To Repair Before Selling House

8 Important Things To Repair Before Selling House

Most real estate agents recommend to repair your house before selling it off but the question is:

How much should you invest in real estate?

According to a thumb rule, following areas of the house must be in good condition if you want a good offer for your house.

  1. External Part of The House

‘First impression is the last impression’

Maybe your house looks awesome from the inside but is a complete fiasco from the outside. Any person who would come to your house for property survey will be turned off.

External part of the house includes the area in front of the main door and the region surrounding the house. Porch, door condition, grass, lighting and cleanliness – everything matters.

  1. Lights

This includes both natural (sunlight) and artificial lights.

With appropriate lightening, your house space can appear larger. Clean your lighting utilities and replace the broken ones.

The intake of sunlight in house is also extremely important. For this purpose, ditch the heavy drapes which block the sunlight.

  1. Paint Job

If we see an automobile with a recent paint job, even without complete inspection, we make a good impression about that vehicle.

Same is the case with houses. If you paint your house, it will give a feeling of freshness. Seller’s agents recommend you to paint your house, especially if you haven’t had a paint job for two years.

Talk to your real estate agent to find out the best painters in your area. Who knows! You might even get some discount deals through your agent.

  1. Windows and Cupboards

A typical window design includes a glass, guarded by either a wooden or metallic framework. Sometimes the glass is broken, sometimes metal involves rust and sometimes the framework is sabotaged.

Normally, when a person goes to see a house, he/she will naturally take a look outside a window, see how things look from the angle.

Same is the case with cupboards. If they are dirty from inside, have broken locks and are not appealing, the buyer will lose his interest.

  1. Taps, Pipes and Drainage System

A lot of people think about selling a house when it becomes unbearable for them. They don’t care about the party which will live in the house, in future.

Taps, pipes and drainage system should be in tip – top condition. In some cases, if you sell a faulty house, you can also get sued so it’s best to give them therefor real estate agent urge you to sell a house in good condition.

  1. Floor

Depending upon your taste, your house may have chips, marble, limestone or hard wooden floor. You can have any floor – that is not the problem.

The problem lies in broken or ill-maintained floors.

Polish your floor and replace the broken tiles. Not only, it is enjoyable to spend time inside the house, refurnishing your house floor is an epitome of higher ROI ‘return on investment’.

  1. Ceiling

Over time, water starts to accumulate between bricks and beam blocks, resulting in seam. The seam tarnishes the paint and makes water drip.

It is an unpleasant sight to watch and definitely can make a deal go south. Also, if your house suffers from seam, any potential buyer will think buying this property is a lost cause, considering seam often comes back.

If you could repair the seam, the house will look good as new and will help make the mind of the buyer to buy this property.

  1. Other Small Repairs

There are things which cost only a few bucks but they either make or break your house deal. This includes broken locks, malfunctioning doorknobs and doors which are not in good shape.

You may think of them as something of less importance but they are what makes the impression of you (the owner) inside the mind of a buyer.

Getting a Pre-Sale Inspection

Seller’s agents recommend getting a pre-sale inspection. This is handy, especially if you have a limited budget and are unsure about which areas need the most attention.

A sellers agent washington dc will help you identify such areas from your house. If you don’t care about pre-sale inspection now, you will find yourself with lots of problems during the time of selling the house.