Ok, You just Bought a Foreclosure now what do you do?
If you are like a few of my clients, You see a Foreclosure as a chance to get a really good deal on a house.
So my question is what do you do with a foreclosure once you purchase it? Well hopefully you Had a home inspection which I myself as YourExitRealtorhighly recommends on any home. I would study the home inspection and make a plan of attack. What do you the buyer have to do to make the home livable? (if it is not)
Every foreclosure is different. Some are move-in-ready, and well others need a lot of work. If you are in the latter group well then it is time to get your hands dirty..
Top 10 Home Up Grades that Pay off...(www.realsimple.com)
1. Painting while it doesn't cost much if you do it yourself, repainting a home will drastically change the look of both the interior and exterior of a home.
2. Siding while there are many types of siding to choose from, by upgrading the exterior of a house, it is like giving a house a face lift!
3. Building a Deck not only does this give you a place to relax in the back yard, but it adds value to the home itself...
4. Kitchen Up Dates you don't have to over haul the entire kitchen! You can add value by replacing the appliances and/or doing cosmetic things like counter tops, paint the cabinets, etc...
5. Windows some foreclosures where built recently but some are 10,20, even 30 years old. So a good idea would be to check the windows. Are they single or double paned? how many windows does the home have? Windows will cost you a little bit of money but you should see a savings on your energy cost every month.
6. Bathroomsalthough a lot of people don't want to admit it... We spend a lot of time in the bathroom of your house. Some some simple bathroom upgrades to use space better or put in more efficient toilet and shower. by doing this you not only increase the value of the home but you make it more efficient.
7. Landscaping is another great thing you can do to your house without having to shell out money to have someone else do it. A little landscaping can go a long way in brightening up the front or back of a house.
8. HVAC Unit UpgradeI go by the motto on foreclosures if it isn't broke don't fix it! But i have to say if you have a 15 year old HVAC (heat and air unit) at the house you just purchased, i would highly recommend having it serviced regularly and maybe even get a quote to upgrade to a newer 13 SEER high efficiency unit, which could save you money every month on that electric bill.
You might ask you self why did YourExitRealtor Not give us all 10 ideas on upgrading your Foreclosure. Well #9 was basement remodel, but most homes in Central Arkansas don't have a basement, so therefore i left that part out. #10 was add a pool.... I only recommend adding a pool to any client of mine if you plan to stay in your home for over 10 years... I have watched to many people put a pool in ($20000.00) sell their house with in 2 years and have to walk away losing that money they invested into that beautiful pool they only get to use 5 months a year.
So as you can see. Here are some ideas if you are looking to purchase a Foreclosure or even a older non updated house. But before you purchase anything remember 2 very important things.
1. Find a good qualified Realtor, and no I am not just promoting myself in this. Realtors are here to help walk you throught the process of Making the Biggest Financial Decision you will ever make. It is our job to protect you the BUYER. Most Buyers are unaware of this little fact... But Buying a house using a Realtor does not cost you any money up-front and most of the time the commission is charged to the seller of the house... so 95% of the time BUYING A HOUSE WITH A REALTOR IS FREE!
2. Second but not the lessor of the 2. Please Please get a HOME INSPECTION done by a Licensed Home Inspector. It is worth more than the $250-500 it cost to have it done.
Thank you and I hope this information Helps in anyway possible.