As spaces that have, more often than not, fallen into disrepair, foreclosures need time, resources, and commitment to work – whether as investments, or as a new home.
See to these five things after you’ve snapped up that foreclosure on a great deal:
1. Clear out and clean the space
Most foreclosures might still hold the possessions of their previous owner. Clear out the old belongings and clean the space to better inspect the property.
2. Hire a house inspector
Have an expert appraise the condition and quality of the property. Take note, however, that home inspectors will only provide their evaluation of the property in its present condition. An assessment of its future condition and its life expectancy are typically not offered in on the table.
3. Consult with a real estate appraiser
Real estate appraisers evaluate the property in terms of its market value. Appraisers produce a written report that’s often referred to in mortgage loans, settling estate ownership, dividing assets during divorce, and tax documentation. Investors in particular should gain vital insight into the property’s cost, its comparison to similar estates, and its income-generating potential, in these reports.
Referring to the information provided by the inspector, hire a contractor to see to the repairs and that new lick of paint. Consult, as well, with an interior decorator or a designer to spiff up the place, should you please.
5. Move in or put it on the market
Once repaired, renovated, and remodeled as you see fit, move in to your new home or put it up on the market. Hire the services of a real estate agent or broker to help you sell the space.