If you are a first time buyer looking to buy a property that delivers a bigger bang for your buck then you should keep an eye on the foreclosures hitting the market. They say there’s never a cloud without a silver lining and, deplorable as a foreclosure may be, it presents the first time buyer looking for a bargain with a rare opportunity to pick up a property at a good price.
As with all opportunities in the housing market it needs to meet a few conditions in order to work for the buyer so let’s check out to see what they are:
1. Location: The cardinal rule of real estate buying is also effective when looking at foreclosures and trying to establish some guidelines as to their potential market value. If the area is right and the property brought up for sale is in a condition that is acceptable then you may well have a bargain on your hands provided the price is right.
2. Condition of the property: never expect properties which are being sold as the result of a foreclosure to be in perfect condition. Lenders, as a rule of thumb, hate having to acquire a property so when things get to that stage it means that the house owner hit hard times some time ago and this will be reflected in the condition of the property. Be clever enough to differentiate, in your mind, between what is cosmetic damage and the need for updating and structural damage. The latter is significant and you will have to think twice before acquitting a property while the former can easily be dealt with and you will be surprised what difference it makes to the value of the property.
3. Price: I know I left this one till last but obviously it is far from being the least of the items you need to take into consideration. You are looking here to acquire a property at well below the market value of a similar property in a better condition that is sold through normal channels. Play this one right and bargain correctly and it is even possible that you find yourself with equity from the moment you step into the house and before lifting a finger to update anything.
The real estate market has always been tough and for the first time buyer it’s tougher still, however, foreclosures are creating opportunity and the savvy house hunter willing to invest a little patience and time can well come out a winner from this acquiring a first time house that would not otherwise be possible for them to purchase.
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