Want A Foreclosed Home?
by Hassan R Smith
Here are some tips on buying a foreclosed property.
The first rule is market value. Is that foreclosed property that you want to buy really below the market value? is it really a good deal?
The home might be 60,000 below the appraised value but you might need to put in $100,000 to get it back in shape. Be careful before you buy. Make sure you get a proper inspection on the property.Get great information at Colorado Mortgage.
It will all most all ways cost more than you think it will. Get a quote from at least 3 contractors, not just one. never just get one quote on fixing something. And all ways budget for the worst case scenario.
make sure you have more than enough money for this project. Do not get half way into the project and run out of money.
Their can be cost you are not expecting. For example, lets say you want to rent the property once you purchase. You will need enough money in the bank in case you don’t get a renter for the property right away.
All so if you are figuring out home much your are going to rent the property for make sure it is twice the amount of your mortgage. You don’t want to get in to one of those house that the rent just pays the mortgage.
The reason you don’t want to do this is because something is going to break. If its not your pipes it will be a door needing to be replaced. You may all so need a new roof. If you are not putting a little money aside every month, this could cost you a lot of money in the long run.
Did the house get winterized correctly? This tip is for people that live in the colder climates. The house may have been winterized correctly, but their will all most always be a pipe that burst when they go and turn that water back on. Great info at
You can expect a busted pipe. Things are going to happen, be prepared. This is where the reserve of money is going to help. Its only going to cost a few hundred to repair.
Just don’t get the water turned on and not be their for a few weeks because you will have some major problems if that is the case. Make sure you inspect everything when they turn the water on
For more real estate tips on real estate market please visit Colorado Mortgage Free real estate tips and 10 years experience in the Colorado Mortgage home property market.
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