Hi everyone,I found a good video series containing some tips on what to look out for when buying a foreclosed home.
http://www.youtube.com/watch?v=g0Dsi6ti8ww&feature=related
and it got me thinking.In your experiences, what are some other things to look out for ? and what kind of problem would raise a "no go" flag for you ?
Good Video
But common sense approach.
Here is my system. I first go off MLS pictures. Now I bid on 100 to 200 homes bi weekly.So not overly concerned with what I need to do.I have a system in place with with where I want to be on purchase prices. If the bank counters back on my offer.I will then make a trip to the house. Now knowing their is room to negotiate.
My budget is based on on a simple walk through of the property. After doing quite a few properties and knowing prices in my area. Here is my normal routine for a new homes that we are trying to by and we know we are close on offering price
First I walk the out side of the property
From the pictures I looked at before I can usually see if AC is their or not . If not $3500 to replace
Then I like to get up on roof if possible. Again being proactive most roofs are 25 to 30 year here in the USA . If not $3k some times cheaper.Then work my way around out side viewing windows and doors. $150 window $$250 doors can work on numbers .
Inside lets go to directly to the bathrooms and Kitchens first .Checking plumbing and seeing what is needed. replace plumbing depends on number of bed rooms and add kitchen in their. Budget $2500 if all needed to be replaced. Most houses 1500 sq ft or larger. Rough price .
Then Electric panel inside and out of house. Same thing to replace all electric $2500 to $2800
These are main concerns cosmetic not overly concerned.Since majority of expenses in the USA .Seem to be electric, pluming , roof , ac and then cosmetics. Prices vary depending on area of rental house.
Just my two cents feel free to email me for some before and after videos and I can help with any questions .
For foreclosures, I typically ensure that I can do some due diligence on the property and visit it myself. I want to check that I really am getting a bargain and understand any potential costs that I may have to fork out.
If I can't check out the place myself, I ensure that I have someone twho I can trust on the ground to check it out.
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