Diving headlong into a home purchase in Miami foreclosures just because the prices are down is a good enough reason; but it is not enough to merit the successful purchase. The thousands of foreclosed properties, bank-owned homes, and short-sales in Miami real estate offers enough selections for you to choose from; however, buyers should first consider the finer details with the purchase to avoid regrets and problems with the acquisition later on. Here are some of the key points you need to acquaint yourself before making any final decision.
Key Point 1: Determine The Reason For The Investment
There is always a reason behind every decision we make, more so in home buying. If you're going to buy a home in Miami foreclosures on a whim then there is a possibility that you will end up with a low-quality home without any potential for the future. In most cases, there are two reasons for buying a home -- first is to use it as a primary residence or a vacation home; second, use the property for income or profit. Knowing the reasons in advance will help you delve deeper into important details for a successful investment
Key Point 2: Price and Quality
An issue with home purchase in
Miami foreclosures is always between the price and quality. There is nothing wrong with selecting a home for its cheap price tag; however, if you're aiming for worthwhile use with your new home then you might want to also consider its quality as well.
For example, you can buy a very cheap home -- let's say for a price below $100,000 -- that is in need of repairs. There is nothing wrong with this decision. Since the price is too cheap, you can use the savings you get out of the deal for improvements -- adding interior and exterior repairs and renovations on the property to cater to your wants and needs. Another option is to go above the budget and settle for a quality foreclosed home with everything you need already in place so you won't have to go into improvements after the acquisition.
Key Point 3: Future Value
One of the reasons why a lot of homebuyers and investors are eyeing the properties in Miami foreclosures with interest is its future value. Getting a home at a cheap price and selling it later when its value is high promise a lot of profit later on. After all, wouldn’t it be great to purchase a home between a standard price of foreclosures ranging between $100,000 and $300,000 to be sold at double the price in the future?
Key Point 4: Location
Another point to consider aside from the specifications of a foreclosed property is its general location in the city. Though many foreclosed homes are in livable neighborhoods -- which means that its safe, clean, and easy access to facilities and services in the surrounding areas; however, there are also very cheap foreclosures in neighborhood that leaves others to be desired. Don't be blinded by the price; consider the location first to see if it is up to your standards or if it will merit a good property value in the future.
William W. Teho, Jr.