Self Help

Before you decide to buy a foreclosed property, do the research. Ask questions of people who would provide the services that you need. By that we mean that you should speak to an oil company, a plumber, and/or a general contractor. After all, if you were to go on a trip, you’d probably get a bunch of maps. You’d then chart your course and figure out how long it would take you to reach each stop. You’d then want to calculate what food and lodging would be required at each stage. You’d provide for rest stops, food stops, tolls, and road conditions you might encounter. You wouldn’t sit down in your car, turn the key, and say to yourself, “I’ll go north for a bit and see where it takes me, then I’ll ask for further directions.” If you’re buying what is basically a problem property, try to get the answers for the problems before you encounter them. You want to be able to react appropriately when the time comes.

If you can gain entry to the property being foreclosed, you’ll have an important advantage. If you can’t get inside, an inspection of the exterior could give you an idea of what to expect. If the outside is bad, you can expect the interior to need work, as well.

You can tell a lot from looking at the outside of a house. You can spot rotting window frames, bad door jambs, and roof and gutter problems. You might even be able to spot termite damage or dry rot. Of course, the driveway and walks are also spots to check.

What costs the most to repair or replace? Plumbing, heating systems, electrical systems, termite repair, and roof repair. Still, you shouldn’t necessarily let problems in these areas scare you away. Everything comes down to dollars: for materials, for labor, for holding time. If the dollars are all there and you still have a cushion, a safety amount in reserve, you’re on the right track.

Pay a visit to the kitchen cabinet and bathroom replacement centers. Price a few typical systems that would be likely replacement purchases. Ask the salesperson how much installation would cost. If you don’t get any good information, you may be able to pick up the cards of installers or plumbers.

If you have to, call the plumber. A good plumber can be real asset in your decision-making process, as can a qualified electrician. You might ask the electrician about the general figure for conversion to 150-amp service or a similar setup. Roofers will quote dollars per “square” (a unit equal to three bundles of shingles). You’ll be able to find out how many squares are typically required for the type of home you’re purchasing. Floors, too, are often in need of repair. If you’re dealing with tiles, go through the same routine. As for windows, you’ll find that the most popular models can be bought and installed for a set sum that is fairly easy to isolate.