“How can you tell a good foreclosure from a bad one?”
Answer:
I’m guessing your question is about the either condition or value. Let me deal with condition first…
“How can you tell a foreclosure is in good vs. bad condition?”
My answer is that you do the same things you would do for any home you’re buying, foreclosure or not:
1. Look closely at the home yourself
2. Hire a qualified professional home inspector
3. If needed, hire other professionals to inspect the structural integrity, soils, roof, pool, electrical, plumbing, heating, etc.
4. Read the disclosures carefully
Keep in mind that bank-owned foreclosures are exempt from most disclosures. If you’re talking about value, then your question is probably…
“How can you tell if a foreclosure is a good deal or not?”
Again, you would do the same things you would do for any home you buy:
1. Do your own homework to get a feel for values by:
a) viewing homes for sale
b) finding out what similar homes have sold for
c) keeping up with market trends
2. Don’t depend on appraisals; they are often high, low, or dated
3. Have a knowledgeable agent you can trust to advise you
Good luck.
