The answer is…it depends…
First, you need to identify what makes a deal good to you? Good price? Good Condition? Good Terms? Some combination of the three? Knowing what makes sense for your goals and finances is the key knowing if the property you’re looking at is a deal.
First things First…..
When thinking about buying a foreclosure, or any home for that matter, make sure you know what your goals are for the property BEFORE you make the offer!!!
Just remember, “if you fail to plan you plan to fail”, at least most of the time anyway. When it comes to my clients, I let them know upfront that if they like a property that needs $30K in rehab costs, and a lot of out of pocket expenses, but they don’t have much money to put into the deal readily available, that they need to be careful.
They may say they want the property and it’s a great deal (which it is just not for them at the moment) since it’s being sold for $125,000 and would be worth close to $225,000 after the rehab, but without the rehab money available, or money to hold the property until it sells, they are probably making an unwise decision for themselves.
This is why you need to plan for your own goals, exit strategy, and financial abilities. Find out what a good deal looks like for your situation. For example:
- Do you need a home that is priced fairly, but is in an area you’d like to live, or invest in?
- Maybe you don’t mind doing a ton of work if the price is right?
- How about looking for something that will provide a good rental income that can supplement your current income?
- Do you need financing? If so banks will need the home to be somewhat habitable unlike many foreclosures
The point is that no one knows what makes anything a good deal for YOU, except YOU and those who you share your criteria with (Realtors, other investors, etc.). If you are thinking about buying a foreclosure to live in then some of the same questions should still be answered.
Also remember, that even though there is a large supply of homes for sale, I’ve noticed here in the S. FL area they are being purchased very quickly and many times have multiple offers which means you need to be quick and decisive. Not impulsive, but know what you are looking for and what you’re willing to pay.
I guess to sum up the whole post just remember is that just because something says “Foreclosure” or “Corporate Owned” or whatever term is used, it doesn’t make it a good deal for YOU. Be smart and do your due diligence or find an agent who will do it for you…
If you are looking in the Broward County or Palm Beach area for Foreclosure properties or just had a question feel free to email me at firstname.lastname@example.org and let me know what you’re looking for. I’m glad to help and there is no cost to you.