Many cities are experiencing a similar phenomenon, the housing market which was so strong several years ago has gone into a major decline and owners are unable to keep up with their home payments. Since the economy isn't doing as well as most Americans expect, many mortgage lenders are increasing rates on adjustable mortgages, leaving tons of home-owners unable to keep up.
When home-owners are unable to pay, they are forced out of their homes and banks foreclose on their former residences. Now, many major housing markets have a plethora of foreclosed homes which are now vacant and waiting to be sold to new buyers. Most of these homes are in good condition, easily claimed at a reduced price in order for the banks to recoup lost money. Some, however, have been mistreated or unkempt since being abandoned, requiring much more initial work for the prospective buyer. If you are in the market to buy a home, or want to make some easy cash by "flipping" a foreclosed home, consider a few pointers before making the initial investment in a vacant house.
-If getting the home inspected, make sure the electricity and water are turned on. If the bank has foreclosed on the home, it is likely they have turned off these utilities that are necessary for a proper home inspection.
-Check with neighbors to find out details about the neighborhood and former owners. This could provide valuable info about marketing the home to buyers if you are going to flip it.
-Research similar homes that have sold in the area recently. This could give you a good idea about how much time to expect when trying to resell the home and how much you could anticipate making.
-Hire a good realtor. Many times only qualified professional realtors know the ins and outs of homes that have been vacant or neglected. By using a real estate agent that knows the area, you can save time and money searching for the right foreclosed property to invest in.
If you are thinking of buying a foreclosed home in the Hampton Roads area, consider using the team at Chandler Realty to guide your buying decisions and assist you with the resale.