Estimating the Cost of Rehab on a Foreclosure Property

2 Replies

I have been doing lots of research on Foreclosure properties. How to price these properties etc. I want to know if I contact the Realtor representing the bank on a Foreclosure property if they will allow me to walk through the home to get a feel for what I'm looking at? If I can walk through and see the home I can better estimate the amount of time and money I need to put into the property. I can also determine if its even worth investing in.

If you have any insight please let me know. I'm just starting out looking for my first deal.

Thanks

It doesn't hurt to try. Depends of the bank and the agent but most of the time no. Think of it from the agent's perspective. If it is in bad shape, why let the world know? It would just keep offers low. The agent has a fiduciary responsibility to the bank to get the most money plus they make more if it sells for more. A lot of the time the agents don't even have access themselves. Banks don't have to fill out the sellers disclosure and all utilities will be off so there is really no reason for the agent to need access.

@Peter M. If the property has gone through the foreclosure process and is now an REO property, there should be little problem other than getting the bank's attention. However, is suspect you're actually talking about preforeclosure properties scheduled for auction. Those properties are generally still occupied by the mortgage holder. The owners are many times in denial and completely stressed. The bank doesn't have the right to show the property. However, you can contact the owner directly. You can approach them directly and offer you buy the property prior to auction.