7- GREAT TIPS ON HOW TO BUY A FORECLOSURE
- Step 1 Educate yourself! The first step is to learn as much as you can about Real Property and the process of owning Real Property. Since the process of buying a foreclosure is quite a bit different than buying from a private seller, you must do research, ask lots of questions and read articles like this one.
- Step 2 The next step, if you have decided to pursue a foreclosed property is to talk to a banker. Know your credit score! You must be pre- approved or have “Cash” money to make an offer on a bank owned property. Most “Banks” will require a pre approval through them regardless of your lender to ensure that you can move forward on “THEIR” property.
- Step 3 Find a licensed Realtor that specializes or is familiar with foreclosures. Interview them for the job. You are hiring them for their experience and skills! Ask for referrals and references.
- Step 4 Do a “Drive-By”, take a look at the neighborhood. Do your best to use the information you have to determine if the property will meet your needs. Research the area. If you plan to live in it or rent it out, what remodeling will need to be done to make it inhabitable? How much will that cost? High crime areas and environmental concerns must be addressed!
- Step 5 If a property passed an initial Drive-by or viewing, it’s time for action! Get your agent involved. They work for YOU.
- Step 6 If the property has passed your financial analysis, inspections and you are ready to move forward, it’s time to submit an offer. Your representative will walk you through the process. Make sure that you are prepared! Ask questions, take notes and ask for copies. Be prepared for multiple offers. Ask your agent what is a good price for the home. Formulate the highest price you are willing to pay, add the estimates for repairs and labor, then add an additional 10% for error or unexpected developments. Decide if it makes sense to you.
- Step 7 In conclusion, The difference between investors and individual buyers is the motivation. An investor are looking at numbers and profit. Do the research, educate yourself and find a local real estate professional willing to work hard for you.
IF YOU ARE LOOKING TO PURCHASE IN THE SOUTHERN CALIFORNIA EMAIL US FOR A LIST OF BANK OWNED PROPERTIES OR CALL (619) 454-2927. WE SPECIALIZE IN SAN DIEGO, CHULA VISTA, SOUTHBAY, RIVERSIDE COUNTY, TEMECULA AND ORANGE COUNTY.