It is interesting to invest in real estate by purchasing foreclosures in Savannah. Reality TV shows show how investors can pick them up at a low cost, fix them up, and sell them for a profit. If you plan to buy foreclosures in Savannah, here are five things you should know.
Foreclosures are fewer now
When it comes to buying foreclosures in Savannah, the first thing you should know is that the overall inventory of foreclosed properties is shrinking. Each day, there are fewer and fewer foreclosures available, and those that remain get snatched up by cash buyers who move very quickly. We can help you find foreclosures in Savannah, so contact us right away at (912) 421-9907.
Buying at the Auction
If you aren’t an experienced real estate investor who has a lot of money to spend, buying foreclosures at auction isn’t the wisest choice. When you attend a foreclosure auction, you may not be allowed to enter the property or have it inspected, so if you do win the property, you do not know the condition of the building, and may lose out.
Buying Bank-Owned
Getting a good deal on a foreclosure can still be possible if it is bank-owned, but you might have to make a higher bid if other foreclosures are selling quickly. It means that other people are buying up foreclosures quickly, and if you really want to get in on this, you may need to start with an offer that is close to, or at, the asking price. To get the foreclosure you need to offer more than the asking price and limit the contract contingencies if there are multiple offers. Location and amenities play an important role. Other foreclosures might sell quickly if they’re in a great location.
Have the Property Inspected
Since most foreclosures are sold by banks, there is no traditional seller to make repairs before closing. In most cases, the bank will not make repairs to the home. They are trying to recoup as much money from their investment as possible. If you are making an offer on a foreclosure, include a contingency for an inspection so you will know exactly what you are getting into if the bank accepts it.
Beware Hidden Costs
There may be additional costs associated with buying foreclosures in Savannah in addition to the purchase price and closing costs. When an owner is unable to make the mortgage payment, it’s likely that they did not pay the real estate property taxes or homeowners association fees if the foreclosure is in a community. Other liens on the property may also be your responsibility, such as utility bills and home equity lines of credit. Make sure the title company considers these factors when preparing the title commitment.
The cost of making the necessary repairs or cleaning will also have to be considered when you buy a foreclosure. It is not required to clean up these properties when they are seized by the bank, and the previous owners may be angry about the bank foreclosing on them and damaging the property as a result. As a result, repairs to the home may increase the assessed value and raise taxes as well.