10 Tips for Investing in Distressed or Foreclosed Properties1. Search on
world wide web for distressed or foreclosed properties as a starting point. Use a professional REALTOR to identify great foreclosure deals for you. You may be successful at searching
web on your own, but keep in mind some of
information is outdated, some may be incorrect, and some of
available properties are not even listed. A REALTOR subscribes to updated MLS listings and can offer you
most current information available.
2. If you search yourself for distressed properties and purchase from
selling agent, you are paying a commission to someone with a vested interest. Obtain objectivity in
sale by working with your own REALTOR. You won’t pay any more. Technically, everyone works for
seller, since they pay
commission.
3. With distressed or foreclosed properties, time is of
essence. Purchasers must close on
date specified by
agency, and cannot close after this without penalties of $25-200 per day.
4. It takes 1-3 weeks to qualify a loan. If you are approved for a loan, make sure you are qualified by your lender as soon as possible. If you are paying by cash, make certain funds are available. If finances are in order,
REALTOR will then submit an offer. When
offer is accepted by both seller and buyer,
REALTOR will submit
ratified contract to
lender and closing agent. These steps will begin
process of a successful real estate transaction.
5. When purchasing a distressed property, always obtain 3-4 bids from different contractors to estimate costs of repairs, if you do not plan on doing
work yourself.