What Should I Look for in a Foreclosed Property?

Users who spend time searching through our listings usually find a property they think might be worth pursuing. Once you find that property you should investigate it in person to make sure it's something you really want to buy.

Depending on the type of foreclosure, you may only have a few weeks or a couple of months before the sale to investigate. Make sure you give yourself enough time to get all the information about the property you need to determine if it's a good value.

The first thing you'll want to do is visit the property. A drive-by should be all you need to rule the property in or out, but you may want to call the trustee of the sale if they are mentioned in the listing to set up a full tour if you have time later. Visit it and see what it looks like from the point of view of a passer-by.

Here's a list of questions you should consider in your initial impression:

Is the property in obvious disrepair? Remember that the cost of making some repairs may still keep you far below the market value of the house. How comfortable you are with repairing your home should depend on your budget and skill level.

Does it look like the kind of place you'd like to live? Whether you're looking to purchase a family home or invest in a property to sell at a later time, it's worth asking yourself if this is a home where you could see yourself comfortable living.

What's the neighborhood like? Do you think it has potential to improve? Researching the crime rate and ranking of schools in the area may help influence this decision. You can usually find this information through local government websites.

How much land does the property occupy? Don't immediately assume you have to make major sacrifices to get the best deal for your budget. You may not need to deny yourself the amount of land you want to own because you think no better deal will come along.

Is it near major amenities like transportation, shopping or businesses? Drive around to see if the property is within convenient vicinity to anywhere you may need to go on a regular basis.

Is it near any parks or community facilities? For families with young children this may be a very important commodity.

Is it near any negative features, like a loud highway, factory or railroad line? Again, don't assume you have to limit yourself to less attractive properties to stay within your budget.

Would it be attractive as a rental? This is very important for a buyer who sees their property as an investment. No investor should purchase a property they genuinely do not think they could sell or rent.

Don't be discouraged if the property doesn't meet your standards. Through services like ours you will have access to a steady stream of listings from which to choose. It's much better to wait for the right property to come along than to pursue something you know doesn't have any potential.