A regular foreclosed home for sale is usually offered at a very affordable price. However, even with the low prices of these properties, some buyers still cannot afford them. For those who are in such a situation, other options are available.

Buying Foreclosure That Requires Repair

There are foreclosed residential structures that are offered at even lower prices than regular foreclosures. These are homes that require repairs and renovation before they can be lived in. Fixer uppers and handyman properties are just some of the examples of such homes.

The good thing about these houses is their prices. Most of them are offered at 50 percent below their real market value; sometimes, even less. But are they worth the cost of repair that they would entail? They could be if the buyer knows what to look for.

Factors to Consider

Before purchasing a home that requires renovation, there are some things that buyers should take into consideration first. Primary of this is total cost. The best way to make a safe estimate is to make a comparison.

Find a regular foreclosed home for sale and compare its purchasing price, plus all the additional fees and charges required to own it, with the costs that will be used on another property that requires repair. The cost for the latter should include professional home inspector fees, cost of repair services, prices of materials, actual price of the property and other expenses that would be required to make the place habitable.

If buyers can make the repairs without needing to hire handymen to do the job, then that can be considered additional discount. If the cost of purchasing and repairing a property is at least 70% less than the total cost of purchasing a regular foreclosed property, then a buyer will do better to go for the one that requires repairs.

Making Additional Savings

To lower the total cost of repairs, home buyers should concern themselves primarily with the foundation of the property and should not be too focused on aesthetics. In cases like this, functionality should be the priority, not looks.

A foreclosed home for sale that requires renovation and repairs can be a wise purchase if the buyer is practical. Attention should be given to the built and structure of the property rather than appearance.

Source by Joseph B. Smith

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