Whether you’re a house-flipper, real estate investor, or looking for a great deal on a home, foreclosed houses can seem like a total steal. Before you snatch that property off the market and buy a foreclosed home, there are a few things to consider.
Look Into the House’s History
Many states require the seller of a property to complete a Seller’s Property Disclosure Statement (SPDS), though it varies depending on your location. This statement can give you a decent picture of the property’s history, including repairs, maintenance, or additions. However, the statement won’t tell you if a third-party seller, like a bank, own the foreclosed property. Additionally, the statement won’t tell you if an owner transferred the property to family members such as a partner, children, or siblings. While an SPDS won’t give you the entire picture, it’s a great first step toward learning about the property and making a more informed purchase.
Hire a Home Inspector To Conduct a Report
One of the most important things to consider before buying a foreclosed home is its overall safety and structural integrity. It’s important to note the cost and time it would take to fix the home may be more than you’re willing to put in. A home inspector can conduct a thorough report. Their job is to find any issues with the structure or mechanical components, such as roof leaks, failed plumbing, unsafe electrical wiring, and other safety hazards. Hiring a home inspector will help you determine the property’s overall condition and whether it’s worth putting your time and money into it.
Watch Out for Deferred Maintenance
While a home inspector can tell you whether the home is safe, functional, and structurally sound, you’re not just looking for a roof and four walls. The aesthetics of a home matter, and shoddy maintenance and repairs from the previous owner or seller don’t deal well on the market. Is the roof missing tiles, or are the gutters completely stuffed? Is the lawn overgrown, or are any windows broken? How are the aesthetics of the exterior and the interior of the home?
Asking yourself these questions can help you determine whether you can handle all of the work that comes with repairing, renting, or selling a foreclosed home.
If you’re ready to buy that foreclosed home and make the necessary repairs but don’t know where to start or who to contact, Excalibur Homes is here to help. We’re a property management company dedicated to helping landlords and property owners deal with the day-to-day hassles of owning property. We can put you in touch with one of our property managers in Jacksonville, Florida so you can start turning junk into dreams today!
