Investors thinking of dipping into a US foreclosed homes auction have been warned by an expert to do their research before taking the plunge. Jamie Smith Hopkins of the Baltimore Sun warns advice from real estate investors suggests there is ‘no guarantee’ of getting a bargain when chasing a home put up for sale after being repossessed.
She writes asking prices could be more than houses are worth while some properties may require more work than some buyers can afford. The blogger also states:
“Some lenders keep a list of their post-auction properties – known as “Real Estate Owned,” or REO – on their Web sites. Countrywide, last I checked, had more than 250 in Maryland.”
Other tips include making sure you are prepared to pay a deposit before going to bid at auction. The Chicago Tribune also recently said property investors should go looking for foreclosure bargains “with eyes wide open” as a lot of hard work can follow a purchase.
Advice from experts quoted by the paper included looking out for heavy weather damage or vandalism to homes, and checking for old plumbing and electrical systems which could be costly to upgrade.
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