At least once in your life, you’ve probably dreamed of having your own residential property where you and your family could grow and create meaningful memories. But despite the many discount promos offered and rent-to-own properties available, investing in your own property could still be a faraway dream due to the expenses and processes involved.
If you are looking for something more affordable, consider foreclosed properties. But while they could be cheaper and serve as your gateway to your ideal home, there are things you need to carefully consider before buying any foreclosed property.
With that being said, here are six tips you need to consider before buying a foreclosed house and lot or condominium.
Know Where to Find Them
Not sure where to search for foreclosed properties? Consult property platforms, banks, lending institutions, and government agencies such as the Social Security System, the Home Development Mutual Fund or PAG-IBIG Fund, and the National Housing Authority for lists of foreclosed properties in Metro Manila and even in provincial areas.
You can also consult banks and financial institutions as they have a list of partner accredited brokers and real estate agents that can show you all the foreclosed properties available.
Do Research on the Location
Once you finally have a list of potential foreclosed properties to buy, conduct research on the location. Consider if it is accessible to prime establishments, business districts, and major thoroughfares. It is also important to check whether the property is located in a secure and safe neighborhood.
Other than accessibility and sanitation, it is also important to research if your foreclosed property is in a high-growth. That means your property could appreciate over time and make your investment worthwhile.
Inspect Before You Buy
After researching the location of your foreclosed property, inspect the actual property for any damages that might need repairs or renovations. Check which rooms need repainting, which hardware needs to be replaced, and whether there are cracks that need to be sealed. Also check if the foreclosure electric wiring is still intact or if it needs replacement as these may cost more and be fire hazards once you move in.
Ready Your Finances
Now that you’ve chosen which foreclosed property to buy, prepare financing and consider the best payment terms. You can choose from in-house, bank financing, rent-to-own, or Pag-IBIG funding.
You can also consider which foreclosed properties have a higher selling price but have more flexible payment terms and fixed low-interest rates for at least five years. Doing so will save you from the hassle of dealing with soaring rates or needing to refinance your mortgages.
Only Work with Accredited Brokers
When buying any property, always work with accredited brokers and agents. Because foreclosed properties are sold “as is,” working with licensed brokers and real estate agents reduces any risks of having problems with your financial plans and foreclosed property.
Know Your Fees
Other than being ready to pay the downpayment, the balance of the selling price, and the necessary repairs, prepare enough money to cover extra fees such as notarial fees, registration fees, transfer taxes, and documentary stamps taxes. If you are buying a foreclosed condominium, you will have to pay for monthly association dues as well.
Buying foreclosed properties may seem risky due to them being sold “as is,” but by knowing what to look out for, you can find the property to turn into your dream home with ease.