Connecticut foreclosures can be a great investment for anyone who wants to buy a home on a budget – but be careful. Sometimes what seems like a real estate gem can end up being fool’s gold. If you’re looking for a project to flip or just a house to settle in, here are 3 things to look for to make sure that your investment in a foreclosed home is a good one:
1) How’s the Neighborhood? Location should be a huge concern when buying a home, especially if you’re trying to resell it later. Houses that are way out in the country or in a bad neighborhood can be miserable to live in, no matter how cheap they are. Before investing in a foreclosure, check out the location and make sure it’s desirable.
2) How Much Work Does it Need? Never buy a foreclosed home without inspecting it first. Because foreclosures are typically unoccupied for a while before they’re auctioned off, they’re almost guaranteed to need some repairs. Plastering and painting might not be too bad, but replacing windows and rotted drywall can be a bigger task than you bargained for. Don’t trust what a bank puts on the disclosure sheet – make sure you see the damage for yourself before investing.
3) What’s in the Fine Print? Buying a foreclosed home from a lending agency isn’t as straightforward as buying a house through a realtor. In many cases, there are unpaid tax liens and debts associated with the title that you’ll be required to pay off. If the home is currently occupied, you might have to wait months before the residents are required to leave, even if you’ve already claimed ownership. Consider hiring a Connecticut real estate lawyer to analyze all the paperwork before you sign. That way, you’ll know just what you’re getting into.
Buying a Connecticut foreclosure isn’t for everyone. The glut of paperwork and the extensive repairs that go along with many foreclosed homes can be too much for some people to handle. However, if you’re willing to put in the time and effort, you can save a significant amount of money and even turn a profit when you decide to sell the home.
