Today, we are talking about foreclosed homes. Many banks and government agencies have foreclosed on properties and they sell them to the public. Some of these homes are sold quickly, and they are sold in “as is” condition, which means they usually need a lot of repairs. On other properties, banks are willing to take their time and make improvements. Here are three tips to keep in mind when you are planning to invest in a foreclosed home in the Portland area.
Don’t be afraid to make a low offer. You should also try and negotiate with the bank that owns the property. These banks do not want to hold onto the properties, so there is no reason to pay the full asking price. See how far you can get them to come down, and get a good deal.
Have a home inspection. This is a critical thing to do when you are considering a foreclosed home because it is possible the property was trashed by a previous occupant, especially if those occupants were angry about the foreclosure. You want to have a clear and honest understanding of what you are getting into.
Consult with a property manager. When you have found a foreclosed home that you would like to buy, and an inspection has been conducted, talk to someone who can offer a professional opinion about whether you have a good house in a good location. A property manager can also help you figure out what kind of rent you will receive from the home. You will also get an analysis of what kind of work will need to be done before the house is ready for the rental market. The cost of repairs needs to be considered with the cost of the property.
If you and your property manager do the math and decide it’s a good investment, you should go ahead and make your final offer and then close on the sale. Once you do that, you can turn it over to your property management company so they can get it ready for the rental market.
Please do not hesitate to contact us at Jim McNeeley Real Estate for any help with foreclosed homes or property management in general. We would very happy to talk to you and help you out in any way we can.