Real estate investments are among the smartest ways to make money, but there are so many options, from renting to buying fixer-uppers to resell. Purchasing a foreclosed home may seem like a daunting task, but you can make serious money if you understand what you’re getting into. Here are four benefits of buying a foreclosed home in Atlanta.
They’re Priced Below Market Value
The most obvious benefit of purchasing a foreclosed home is the price. More often than not, foreclosures are far less expensive than the original market price, meaning you’re paying less than what the home is worth. Banks don’t want to hang onto foreclosed homes for too long, so they list them below market value.
However, many foreclosed homes are so affordable because they are in a distressed condition, which means you’ll need to invest time and money into touching up the house before you can resell it for a significant profit.
They Have a Motivated Seller
As previously mentioned, banks don’t want to hold onto a foreclosed home for a long time, so they might accept a reasonable offer that’s even less than their listed price. That doesn’t mean you can make any offer, but if you suggest a reasonable price, the bank will likely consider it.
You Can Get Better Financing
Most investors can’t afford to buy a home outright, so they take out a loan to make their investment. A foreclosure requires a smaller loan, which results in smaller monthly loan payments. Additionally, buying a home directly from the bank could allow you to negotiate a favorable financing deal since the bank wants to sell the house as quickly as possible.
You Can Make a Significant ROI
The potential for a high ROI (return on investment) is significantly higher on a foreclosure since the original property price plays the most prominent role in calculating how much profit you’ll make. The best way to ensure that you’ll have a high ROI is to look for foreclosed homes that don’t require as much maintenance to make them presentable—remember, you need to sell the house again!
Now that you know the four benefits of buying a foreclosed home in Atlanta, start looking for houses to buy in Atlanta—there’s an incredible selection out there!