Sunday 19 November 2017

You're closer to Buying Foreclosure Properties than You Think

The real estate market is showing increasing signs of recovering and there are great investment opportunities to be found. Home prices are still relatively stable and interest rates are still very attractive.

However, whether buying for a primary residence or for investment purposes, there are still some basic guidelines to follow when considering buying foreclosure property in panama.

Below are my 3 Buying Foreclosure Properties Tips

Work with a broker.

It does not matter if you are buying a foreclosure for investment or as a primary residence, it is really helpful to have a broker help with the process.

Neighbourhood is one of the most important factors when it comes to buying a home and a broker is worth their weight in gold when it comes to knowing the local real estate market.

Do the financial due diligence.

All we need to do is remember the real estate market crash to see why it is important to do a thorough financial due diligence when purchasing a home.

Be realistic about your budget and how much home you can really afford. If the home is an investment purchase, can you make the mortgage payment if you have to carry the mortgage for a few months?

That can happen with investment property so be sure you factor in at least six months of mortgage payments, just in case.

Also factor in the cost of any repairs. This is especially true with foreclosure purchases, which are often sold, 'as is' which means they often need repairs.

Verify the condition of the property. Restore and repair costs add up on a total value of a home.

It is always best to purchase foreclosed properties for sale in panama that require minimal repairs, otherwise your profit margin shrinks.

Understand that every neighbourhood is local to that neighbourhood.

What this means is that what is selling in one area may not be selling just down the road, so you need to do your homework and check comparable homes in the area to know whether or not what you are buying is a good investment. Get a proper assessment on the home you are considering purchasing.

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