BiggerPockets

5 Things To Know Before Buying a Foreclosed Home

Thursday, October 29

Buying a foreclosed home is a good way to either make money or gain immediate equity in a home for many people. For most people, their home holds the majority of their available money that they would have to invest. This is why you should always have your money working for you. You always make money if you buy something low and sell it high. That’s why buying a foreclosed home could be a moneymaker.

If you are just getting started, you need to learn all the possible pitfalls that come along with buying a foreclosed home.  Here are five things that you should keep in mind before you get started.

1.  When you find a home that you think you may be interested in, go and look at the neighborhood before going any further. The real estate slogan ‘location, location, location’ holds just as true for purchasing any type of home. The house may be beautiful, may be grand, but be sure to look at the other houses in the neighborhood. If they are in decline or are in poor condition, your house will be more difficult to sell. An old Golden rule, “You want to be a Chevy in a Cadillac neighborhood” Why? Either your neighbors will bring your home value up OR they can bring them down. Unless the neighborhood has some special purpose or meaning to you that brings other value to the table, look for homes that are on the lower level of the average cost in the neighborhood.

2.  Check to see how close schools are to the neighborhood your house is in. Does the school have a good reputation? Other amenities to consider are shopping, parks, and possible neighborhood upgrades. Is shopping close by? Is there a neighborhood park for the kids? Is the city going to revitalize this area of the city? All of these issues will have an impact on how quickly you can sell the house and for how much. All of the points mentioned above will either bring value to the home or take value away.

3.  Homes that need many repairs are the best opportunities to either make a lot of money or lose a lot of money. Why?

• These homes are priced better because fewer people want to deal with all the work that it will take to repair them.
• Most people have a hard time imagining what it will look like when it is completed. The fewer people that the home appeals too, the more difficult it is to sell. Therefore, they lower the price to try to attract more buyers.
• When you have purchased the home correctly and have done the repairs properly, you will and up with a home that is freshly remodeled to your taste at below market value. The most important things to know in purchasing these types of homes is to make sure you know ALL the costs that you will incur BEFORE you make any offer. Secondly, make sure that the contactor that gave you all the costs is the right contractor for the job.

4.  When you are about to make an offer to the bank on a foreclosed property, it is important to show the bank you that you are serious and you are in a financial position to go through with your offer. Remember the Assets Managers who manage these properties manage many others as well. Therefore, when an offer comes in to the Asset Manager and the offer comes with a pre-approval and a good amount of earnest money, they are more likely to look at your offer in a more favorable light.

5.  The best deals seem to come in two different situations.

• Get the listing when it first hits the market. Sometimes a realtor makes a mistake or the Asset Manager just wants a house off its books. Either way, it is priced right. You must be ready to act on it and you need to be at the right place at the right time because these homes do not stay on the market long.
• The second scenario takes a little more work and a little less luck. You often see those homes that have been on the market for more than 3 or 4 months. A home that has been on the market that long is obvious overpriced for what it is. The Asset Manager is tired of managing them and their boss is probably on their back to move them. In this case, there is a play to make them a low-ball offer with a quick closing. It does not work all the time but it dose work often enough to track those homes.

Now that you know a few things about foreclosures, you need to find the Right Realtor and the Right Contractor. In Southeastern Michigan, there is a new company that I think is perfect for purchasing foreclosed homes. Foreclosuremadeez.com is a company that will find you the foreclosures and, before you make an offer, they will bring in their sister company, Propertrestorationllc.com, to conduct an inspection on the house and talk with you about any repairs or other possible home improvements you may want. This way, BEFORE you make an offer, you will know your costs for the house. Knowing these costs to improve upfront will insure that you are making the right offer for you and your family.

For more information, visit http://www.foreclosuremadeez.com.

Turn a Foreclosure into a Green Home

Thursday, October 29

Who would have ever thought buying a foreclosed home could or would be green? But it can be an opportunity to be green. HOW?
 
First off, buying an existing home instead of building a new one will decrease the demand on material like trees and other natural products that it takes to build a  new home.

Secondly, most foreclosure that I have seen are in need of repairs. Because there are in need of those repairs  is why they are price so well. When you purchase a foreclosure and start making those repairs, you can turn the home into a home that is greener than what is was. All you have to do is when remodeling the home , make sure you use material and products that are Green Friendly.

Here are 10 Ideas to thinks about when converting you foreclosed home into a Green Home.

Lower utility and water bills. Having energy-efficient appliances in the kitchen and media room can reduce monthly utility bills. Tankless water heaters mean less time and water wasted waiting for water to warm up in the sink or shower.
 
Healthier indoor air quality. Green-certified homes offer reduced exposure to mold, mildew and other indoor toxins. This is especially beneficial to sufferers of asthma and bronchial disorders.
 
Tax benefits. DSIRE is a database of state incentives for renewable energy and energy efficiency. Through the Energy Policy Act of 2005, the U.S. government offers several tax breaks and incentives for efficiency upgrades to homes. The Department of Energy offers federal tax incentives. The USGBC lists local tax breaks. The Environmental Protection Agency (EPA) also offers sources for green funding, as does the Energy Star program.
 
Higher real estate resale value. According to an article in Business Wire, on the one-year anniversary of the Northwest Multiple Listing Service's addition of green-design search features to its property listings database, analysis shows that new and existing green-certified homes in King County sell in up to 18 percent less time and for 28 to 37 percent higher value per square foot.

Improved durability and less maintenance. Certain green building materials, such as bamboo floors, are easy to clean or require less maintenance than traditional carpet flooring.

Reduced waste sent to landfills. Modular homes are built in factories that recycle the waste generated during the construction process and leave less waste at the construction site. Many green homes often use recycled building materials.

Enhance and protect biodiversity and eco-systems. Using xeriscaping and native landscaping reduces needed irrigation.
 
Conserve and restore natural resources. Harvesting gray water saves on water bills. Composting saves money ordinarily spent on fertilizer and sends less waste to landfills. Alternative energy sources means a home neither contributes to rolling blackouts nor is it as badly affected by them.
 
Better for the environment. In the U.S., homes are responsible for 21 percent of the country's greenhouse gas emissions, according to the USGBC. Living in a green home means that you are helping reduce the causes of climate change. Using local materials means less fuel is used when shipping exotic materials from other countries and ensures fair trade and labor issues.

Optimize life cycle of a home. The greenest homes are sustainable, meaning they are built to last and work effectively for generations.

For more articles and information on foreclosure, visit Foreclosure Made EZ.

Foreclosures are a Place to Get a Real Bargain

Thursday, October 29

If you have been thinking about buying a foreclosed home as an investment or as a second home for you and your family, you may be on the right track. However, buying a foreclosed home is a task that you should not take lightly. You need to know the ins and outs of foreclosures and that is why ForeclosuremadeEZ.com has put together this must-know list of tips for buying such a property.

You must start your search by acknowledging these few basic facts.

1.  It is not going to be easy and it will take a lot work and research. In very rare instances will you be able to find that perfect home that fits you and your family. It may take you hours of careful research and planning to locate a foreclosure home that fits your budget and your family’s needs. If it were easy, everyone would be doing it.

2.  Do not expect to find a home that you are just going to move into right away. Remember the last person to own this home may have been forced to leave and probably did not do so willingly.

3.  You are only as good as the people you have helping you. You will not be able to do it without help from a GOOD foreclosure specialist and a GOOD contractor.

4.  When it is done right, you will end up with a home that is worth more than what you paid for it, no matter what state the economy is in, and it should be remodeled to your personal taste.

Now, once you are willing to except the facts above, you are now ready to start your search. When you start, keep these recommendation in mind.

1.  Get Pre-Qualified: Securing financing early in the process is important because it will ensure that you are qualified to purchase the home. Being pre-qualified will also give you greater bargaining power when the time comes to make an offer. Find a lender that has worked with a number of foreclosures and understands the foreclosure process in depth. Taking the time to find the right lender will save you a lot of frustration and may save you from missing a good deal.

2.  Know the Process: Knowing about the foreclosure buying process is an important part of purchasing such a property. You can buy a foreclosed property at auction, by working directly with the seller of the property, or even by working with a real estate firm that specializes in these types of homes. Companies like Foreclosuremadeez.com can really help you through the process.

3.  Research the Area: Once you indentify the properties you may be interested in, your research is not finished. You will need to start looking into the benefits of the surrounding neighborhood, the availability of public and private schools, the population of the area, average property values, the rate of property value growth in the area, and the availability of career and recreational opportunities. The foreclosure expert at foreclosuremadeez.com can help you with all of this information.

4.  View the Properties: See the neighborhood, get a feel for the house and see through the mess. THE KEY TO GETTING A GREAT DEAL IS THE ABILITY TO SEE WHAT THIS HOUSE CAN BE, NOT WHAT IT IS TODAY!

5.  Bring in the right contractor.  You need help now. Bring in a good contractor to walk the home with you to find all the repairs you will need to make and talk with him about the possible changes you may want to make. Once that is done, have him give you a firm cost to make all the necessary improvements. REMEMBER, if it is a good deal, time is of the essence. A Good contractor that I know of is Propertyrestorationllc.com. They will do the inspection for you and get you a firm cost within 24 hours

6.  Make an offer that works for you. Now that you have your financing in place, you have found the right home,   have all the cost of repairs for the house, You are now ready to make the right offer that fits you and your family. And once accepted, you are on your way to a home that is totally remodeled your way at a great price. ForeclosureMadeEZ.com and PropertyRestorationLLC.com can help you find and get that great deal. Together, they are here to take the risk out of buying a foreclosure and make it EZ so you get a great deal.

10 Inexpensive Home Improvements to Sell Your Home Faster and for More Money

Thursday, October 29

Just imagine you are shopping for a car and you find two of the exact same cars you were looking for next to each other. One of the cars is perfectly clean and shiny, and when you sit in the car, it had the smell of a new car. The other car was dirty and, when you sat in it, it had a funky smell to it. Which one do you think is worth more?

It is the same with a house. A home that shows well and smells good is worth more than a home that does not. Therefore, to help you try to sell your home faster and for more money, here are 10 inexpensive home improvements that will help you.

1) Repaint Rooms Paint is the cheapest way to make a home look new and smell new. Paint also brings emotion to a home. Remember people buy emotionally and not logically. Read up on some on the most popular color trends today and bring those colors into your home. Also, remember paint with light colors to make living areas appear roomier and darker colors for a cozier feel.

2) Wash and Paint the Exterior: The exterior of your home is the first thing a person sees when they come to see your home. Therefore, take as much care and effort into the exterior of your home as you do the interior. Spruce the exterior by power washing it and trimming the landscaping. If your house's exterior paint has faded, a new coat will add value and attract more house hunters. Moreover, if your landscaping is overgrown, trim it up and weed the beds.

3) Bring the Light in New: If you have old and outdated light fixtures, go to one of the lighting wholesale places and replace them. If you have a room that is dark, add brighter blubs or a light fixture that has more wattage capability to it. A brighter room will appear more spacious and inviting to potential buyers. Accentuate your house's distinctive elements with track lighting, table and floor lamps, or wall and ceiling fixtures. If you cannot bring the natural light in, bring artificial. Some light is better that none.

4) Cleanliness leads to closing. Clear your house of clutter with new storage or shelving. At the same time, help buyers envision the house as their own by removing personal items like knick-knacks and photographs.

5) Repair and/or Replace Window Screens: Fixing sagging, dirty or ripped screens is one of the easiest and most inexpensive home improvements for home sellers. Take an afternoon and rejuvenate your windows and doors with just a few simple tools.

6) Patch Drywall Dings and Dents: Imperfections like drywall divots suggest larger problems with the integrity of your house. Patching dings and dents is crucial to a fast sell, especially if you plan on painting. Make your walls flawless before showing the house. In addition, if you had stains on your ceiling from an old roof leak, remember to use a product such as Kilz to make sure your paint will cover the old stain.

7) Unstick Stubborn Doors: Sticking doors are bothersome, and even more so to prospective buyers touring your home for the first time. With some sanding, varnish and a little adjusting, you can quickly eliminate this common irritation.

8) Repair Tile Grout: Make your bath and kitchen look brand new by ridding these rooms of shabby and damaged grout. Repairing grout could take some time, depending on the magnitude of the project. The striking results will be well worth the time spent. When repairing that area, make sure they are free of mold. These days nothing turns a potential buyer off more that hearing the home has mold.

9) Replace faucets to give your kitchen or bathroom a quick facelift. Those old brace fixtures are screaming old and outdated. A new faucet can set a more contemporary tone and pique interest from homebuyers. If your current faucets are leaking or worn, a new faucet is an absolute necessity.

10) Clean or Replace Your Carpeting: If your carpets are in good condition, then having them steam cleaned will help them look new. More importantly, it will remove odors from your home. If the carpet looks worn, replace it.

Property Restoration LLC is a company who can help you with all 10 of these items. Why not let them show you how?

Contact us to get more information!

5 Things To Know Before Buying a Foreclosed Home

Wednesday, October 14

Buying a foreclosed home is a good way to either make money or gain immediate equity in a home for many people. For most people, their home holds the majority of their available money that they would have to invest. This is why you should always have your money working for you. You always make money if you buy something low and sell it high. That’s why buying a foreclosed home could be a moneymaker.

If you are just getting started, you need to learn all the possible pitfalls that come along with buying a foreclosed home. Here are five things that you should keep in mind before you get started.

1. When you find a home that you think you may be interested in, go and look at the neighborhood before going any further. The real estate slogan ‘location, location, location’ holds just as true for purchasing any type of home. The house may be beautiful, may be grand, but be sure to look at the other houses in the neighborhood. If they are in decline or are in poor condition, your house will be more difficult to sell. An old Golden rule, “You want to be a Chevy in a Cadillac neighborhood” Why? Either your neighbors will bring your home value up OR they can bring them down. Unless the neighborhood has some special purpose or meaning to you that brings other value to the table, look for homes that are on the lower level of the average cost in the neighborhood.

2. Check to see how close schools are to the neighborhood your house is in. Does the school have a good reputation? Other amenities to consider are shopping, parks, and possible neighborhood upgrades. Is shopping close by? Is there a neighborhood park for the kids? Is the city going to revitalize this area of the city? All of these issues will have an impact on how quickly you can sell the house and for how much. All of the points mentioned above will either bring value to the home or take value away.

3. Homes that need many repairs are the best opportunities to either make a lot of money or lose a lot of money. Why? 

• These homes are priced better because fewer people want to deal with all the work that it will take to repair them.
• Most people have a hard time imagining what it will look like when it is completed. The fewer people that the home appeals too, the more difficult it is to sell. Therefore, they lower the price to try to attract more buyers.
• When you have purchased the home correctly and have done the repairs properly, you will end up with a home that is freshly remodeled to your taste at below market value. The most important things to know in purchasing these types of homes is to make sure you know ALL the costs that you will incur BEFORE you make any offer. Secondly, make sure that the contactor that gave you all the costs is the right contractor for the job.

4. When you are about to make an offer to the bank on a foreclosed property, it is important to show the bank you that you are serious and you are in a financial position to go through with your offer. Remember the Assets Managers who manage these properties manage many others as well. Therefore, when an offer comes in to the Asset Manager and the offer comes with a pre-approval and a good amount of earnest money, they are more likely to look at your offer in a more favorable light.

5. The best deals seem to come in two different situations. 

• Get the listing when it first hits the market. Sometimes a realtor makes a mistake or the Asset Manager just wants a house off its books. Either way, it is priced right. You must be ready to act on it and you need to be at the right place at the right time because these homes do not stay on the market long.
• The second scenario takes a little more work and a little less luck. You often see those homes that have been on the market for more than 3 or 4 months. A home that has been on the market that long is obvious overpriced for what it is. The Asset Manager is tired of managing them and their boss is probably on their back to move them. In this case, there is a play to make them a low-ball offer with a quick closing. It does not work all the time but it dose work often enough to track those homes.

Now that you know a few things about foreclosures, you need to find the Right Realtor and the Right Contractor. In Southeastern Michigan, there is a new company that I think is perfect for purchasing foreclosed homes. Foreclosure Made EZ is a company that will find you the foreclosures and, before you make an offer, they will bring in their sister company, Propertyrestorationllc.com, to conduct an inspection on the house and talk with you about any repairs or other possible home improvements you may want. This way, BEFORE you make an offer, you will know your costs for the house. Knowing these costs to improve upfront will insure that you are making the right offer for you and your family.

For more information, visit http://www.foreclosuremadeez.com.