A foreclosure is what happens when a property owner defaults on the mortgage and falls woefully behind on mortgage payments – as right, the lender takes the property back. Then, the lender will try to recoup losses by selling the foreclosed property for less than its actual worth. That is, of course, bad news for the former owner, but good news for you if you’re in the market for foreclosure opportunities. But not all foreclosure properties and deals are created equal. Some wind up being nightmarish money pits that consume far more time, energy and resources than you had expected. So you need to know how to identify the best and most promising foreclosure opportunities in Boston.
Foreclosure Opportunities Checklist
It’s easy enough to find plenty of foreclosed properties, but the real task lies in identifying the foreclosure opportunities in Boston that have real potential and that promise a good return on your investment. Following is a checklist that will help you do just that:
LANDSCAPING AND EXTERIOR CONDITIONS
What kind of shape is the landscaping in? This can tell you a lot about how long the house has been unoccupied. And the longer it’s been vacant, the worse shape it is probably in because vacant homes deteriorate much quicker than occupied ones. How high is the grass? Is there trash strewn throughout the yard? Any graffiti?
Was the house winterized? If a foreclosed home sat over the winter without proper winterization, then there are probably plumbing problems – and that could mean a lot of costly repairs. Expect there to have been broken pipes, water damage, and an usuable furnace (and be happy if those aren’t the case)! You won’t know for sure if water lines have burst till you turn on the water or have an inspection done, but in cold climates, they are probably there.
What is the neighborhood like? Location is critical, so the quality of the neighborhood is just as important as the condition of the house when you’re assessing foreclosure opportunities in Boston. Pay attention to things like the surrounding businesses, the school district, cars parked on the street and in driveways. and other homes for sale. Are there trees on the street (a very basic and unscientific, yet gut-check indicator that we sometimes use about the type of residents who live there). Basically, ask yourself this question: Would you want to live in the neighborhood, or is it a sound investment for B/B+ or better quality tenants.
How are the prices of comparable homes in the area? You can get a ballpark figure of the home’s worth comparing its price against the sale prices of other similar homes in the neighborhood. Even better is to have one of our agents at NextHome Titletown Real Estate run a comparative market analysis. That way, you can find out whether the lender’s price is too high and whether it is indeed among the good foreclosure opportunities in the Greater Boston area.
Worth noting – there usually isn’t a lot negotiating wiggle room when it comes to foreclosed properties. The list price is typically pretty close to the lender’s bottom dollar. You will have to make repairs, so if you the after-repair value (ARV) doesn’t make sense and you aren’t getting a good deal, it may be better to pass.
Use an Agent with Experience
Perhaps the best way to sort through properties that are and aren’t good foreclosure opportunities in Boston is by using an agent with extensive experience in foreclosed properties and so is knowledgeable about the foreclosure process. Our agents at NextHome Titletown Real Estate have extensive training in this area, and our broker Rory Gill is a licensed Real Estate Attorney, allowing him to offer additional guidance from a legal perspective. We can help you find the best foreclosure opportunities throughout the Greater Boston area.
Whether you’re buying the property to live in or for investment purposes, it can be either a great deal or an expensive nightmare. Our agents can help you find those foreclosure opportunities you’re looking for. Find out how we can assist you. Contact us today! (617) 657-9811
We can help you identify the best foreclosure opportunities in Boston! Contact us today for more information! (617) 657-9811
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