Things You Need to Know About Buying Repossessed Property
Repossessed Property y is usually cheaper than the properties listed and sold on the open market by real estate agents and owners. Repossessed properties are cheaper because these properties are considered to be nonperforming assets, meaning they are not earning a profit and so on, that is why banks and other institutions who own these properties sell them at a discounted price to potential home buyers and investors.
As specialist agents in selling repossessed properties we have come up with top tips in making sure you get a great deal on your investment.
Some Advantages of Buying Repossessed Properties
1. Repossessed Properties are Cheap
It was mentioned that these properties are way cheaper than the other properties because banks and other institutions do the best way they can to dispose of these properties. However, if many buyers are interested in buying the property, banks –for example, make a bidding process to have a lot of option buyers in which they choose who they think they can earn bigger profit from.
2. Repossessed Properties Have Low Down Payment
Usually repossessed properties have 5-10 percent cheaper down payment compared to 20-30 percent down payment for newly built properties.
3. Repossessed Properties Can Have High Returns on Investment
After some repairs of the property, the value of the repossessed property will now be the same with the current market value of similar properties, thus, gaining some profit.
What to keep in mind when buying a repossessed property
1. Know where to buy
There are many institutions that sell repossessed properties such as banks, insurance firms, and government financial institutions. You just have to know where to find the best deals for you.
2. Work with an accredited bank or broker
There are many institutions that offer a great deal of repossessed properties, but make sure you are doing business with accredited firms to avoid inconvenience and hassle. Some of the institutions that offer legit real estate services are banks or its accredited brokers.
3. Go to property auctions
There are repossessed properties that are not listed on property websites, that is why going to property auctions organized by banks or its accredited brokers can be very helpful because they offer repossessed properties that are not yet listed publicly, thus, having less competition in buying the property. Also, you will have the chance to talk to an agent to thoroughly discuss your inquiries and the chance to ask for some advice.
4. Oversee the property
This is the most basic thing to do when opting for a repossessed property. It is because this is the time when you will know whether it is a worthy investment or not. There are properties that have small damages which will require a short period of time to repair and will just cost you a minimum amount of cash, however, there are also properties which will require a great makeover and that will cost you so much. But whether you like it or not, you should prepare to spend on repair and maintenance.
5. Consider the location
The location is also one of the most important factors in choosing a repossessed property. This affects the profitability of the property. This means that when the property is located near schools, hospitals, factories, and malls, the value of the property is high because there is a big demand in the market.
Selling your house to avoid repossession
If your facing repossession in the UK, our partners PropertyCashBuyers.com created this extremely useful guide to help homeowners actually avoid getting evicted and stop a repossession 95% of the time! They offer the service totally free of charge because they felt some of the lenders practises in repossessing properties was not fair. The guide includes step by step advice including all the required court documents and templates.*
If you're actually looking to sell your home to avoid repossession they also offer a handy property valuation calculator at https://www.propertycashbuyers.com/online-property-valuation/ to help work out how much your home is worth before you decide to sell.
We also recommend you speak with your local citizens advice bureau as soon as possible.
*We do not receive any commission from property cash buyers in recommending their service. We just believe its a pity so many families are repossessed still in the UK when there are ways to avoid it.