Researching foreclosures before sale

2 Replies

Hi, I'm Heidi and am considering investing in a foreclosure as my first property. I'm running some numbers on foreclosures in my area and want to make sure I'm making an educated investment.

What research can be done before investing in sheriff sales foreclosures outside of title searches? I use Zillow to estimate property values and have been guesstimating renovations at $20-$25K.

@Heidi Emmendorfer

Be careful using Zillow, lots of miss leading information. I normally anticipate painting, flooring upgrades and all new appliances on newer homes I also drive by and look at the home. If it’s empty look in all the windows.

It’s a lot bigger gamble on older homes because you don’t know what to expect with the plumbing and electrical.

Remember to always calculate in a unknown factor or 5-10k in renovation cost and if you don’t need it then you make more.

Always look at the homes not what’s online.

@Alex Billips Thank you! Would it be worth it to get a RE license to look at comps? (More reliable? Savings on potential fees)?

Are there any other ways to research a potential foreclosure before auction aside from a title search? The area I’m wanting to invest in has foreclosure info posted online so I can learn what the outstanding balance is and what bank bids are.