Ignite FB Tracking PixelHow To Spot A Great Foreclosure Deal - Todd & Lisa McLain
RE/MAX Properties Inc
Todd & Lisa McLain, RE/MAX Properties IncPhone: (719) 290-6734
Email: [email protected]
How To Spot A Great Foreclosure Deal

by Todd & Lisa McLain 04/14/2019

If you want to take advantage of the market and to get a good deal on a foreclosure, apart from having sufficient cash, there are some few things you need to know before you complete the transaction. Before you get started, you should understand what foreclosure means. Succinctly, a foreclosure is a bank-owned property, often known as real estate owned (REO). For whatever reason, the actual owner stopped the payment of them, so the lender (e.g., Wells Fargo, Bank of America, etc.) legally took ownership of the property. When a Foreclosure is a good deal When you intend to buy a foreclosure, here is how you know you are in for a great deal:

1. “I love it” - This is what you will say after you have viewed the property, driven around the neighborhood and carefully checked the property fundamentals. You love the home because it is almost what you were aspiring for in becoming a rental property owner or new home. 

2. “ I plan to own it for a long time” - This will be your reply when asked. Regardless of how good a deal you think you are getting, the primary point when it comes to ownership is a minimum of five years. If you don’t intend to own the property for that long, it is best you remain a renter. Remember, the three most vital words in real estate are “Long-term ownership." 

3. “It is in good shape” - This is what you will say when your family members and friends ask you about the physical state of the property. A vast majority of buyers do not know how much a property renovation will cost. Here is the reality, repair is expensive and could take a very long time beyond your imagination, so make sure the contractors purchase the fixer-uppers. 

4. “ The price is similar to recent sales in the neighborhood” - This is what you will notice when you conduct a comparable market analysis of properties nearby. 

Confirm Your Suspicions 

To further help you confirm that you are about to make good foreclosure deal, you need to compare mortgage rates, get contractor estimates, and check at least eight other properties so you will be sure what the market has to offer. Following these steps will reduce any risk and ensure the foreclosure you bought was indeed a “great deal.” 

To get the best deals and avoid buyers remorse, talk to your real estate agent about the local area and any insider information.

About the Author

Author
Todd & Lisa McLain

Todd McLain is proud to be the leader of The McLain Group at RE/MAX Properties, Inc. He is a third generation Colorado native and truly loves the lifestyle this beautiful part of the country offers. He graduated summa cum laude from the University of Colorado. Before joining the real estate profession 18 years ago, he was a teacher in Cherry Creek Schools and Academy School District and was nominated twice for Disney’s American Teacher Award. Lisa, originally from Minnesota, has called Colorado home for 30 years. It was her training to become a Registered Dietitian that brought them to the Pikes Peak Region nearly 27 years ago and they are convinced there isn’t a better place to raise a family. At any given time, they may be found hiking, biking or snowmobiling, enjoying friends, family and church events or visiting their sons, now busy college students in Washington and Texas. 

Todd and Lisa are experienced professionals committed to providing their clients with superior real estate service throughout the home buying and selling processes. They provide current and accurate information, expert analyses and intelligent problem solving to empower their clients to achieve their real estate goals. They invest in understanding clients’ goals and in building long term relationships by providing value to the client and demonstrating respect for their clients’ interests and objectives. Todd and Lisa measure success by repeat business and the referrals to family and friends received from past clients.