Overview
Finding Bargains in Foreclosures
The number of foreclosed properties has doubled since last year. While
the crisis is painful to many, foreclosures can represent a big opportunity
for others. Experts advise caution, however, because foreclosures draw a
fine line between big bucks and a big bust.
To find a foreclosure, buyers should contact banks or realtors. There are
also foreclosure auctions.
Experts said it's no longer necessary to purchase a foreclosure list because
there are plenty of ways to find distressed properties for free.
The key is to make sure your foreclosure purchase does not have any title
problems or liens on the property. A real estate attorney may be best
equipped to help ensure a safe purchase.
Buyers should also consider hiring a reputable realtor to assist in the
purchase of a foreclosure. For a buyer the services of a realtor are free.
There are plenty of distressed properties on the market. Florida now has the
third highest rate of foreclosures in the nation with one foreclosure filing
for every 95 households. But experts said this is still not a good market
for people who want to "flip" a property, which means buying it at a bargain
and then quickly re-selling it for profit.
If a buyer is looking for a home to live in, a foreclosure can be a great
buy with a nice percentage price break.
Experts said a buyer should factor in what it will cost to fix up the
foreclosure and experts also advice checking the neighborhood since several
foreclosures in one area can bring prices down.
A good rule of thumb is to avoid a neighborhood if more than 10 percent of
homes are in foreclosure.
The final word of advice from the experts is to be patient. Bargains are out
there now. But the best may be yet to come.