From the Forbes Real Estate Council:
“Information is power, as they say. Becoming informed about a foreclosed property with potential is a must. There may be unresolved issues regarding occupancy, environment, claims, permits or structural issues, all of which may negatively impact the required time frame or budget.
Unless you know which elements to look for, you may not be able to distinguish a good deal from a bad deal. To help, eight members of Forbes Real Estate Council discuss some of the most overlooked considerations real estate investors or hopeful homeowners should be aware of when purchasing a property in foreclosure.
Acme’s Courtney Poulos’ advice:
The Myth Of The Cosmetic Fixer
Do “deals” still exist? Short sales and foreclosures are a good, cheap option. However, if a property has been neglected, which most of these properties have, the systems have also been neglected. Moisture damage, mold, sewer lines, roof, foundation, plumbing and electrical should all be pre-inspected prior to submitting an offer. System repairs can eat into the budget. Make sure the deal is real! – Courtney Poulos, ACME Real Estate
More at forbes.com.