How to negotiate deals for “fixer-uppers” homes?
Why “fixer-upper” foreclosure property?
Fixer-upper properties require fixing, repairing and improvement. So, bank and government agencies leave some room for repairs.
Some people experiencing financial problems simply don’t care about their property as they fear that they are going to lose it. That’s good news for those who do care. They may not have the time to improve their home. They may not have the money to fix it due to their financial problems.
Parties in foreclosures are motivated to cut deals!
Mortgage holder (lender) puts its collateral (borrower’s house) for sale to collect its loan with accumulated interest from borrower.
Banks do not foreclose properties to make profit. They are not allowed to do so. They simply want to get their money back. That’s it! They don’t care if foreclosure property is sold at a lower-than-market price.
Lenders and government agencies that own foreclosed properties want to get rid of them fast. These vacant properties are subject to vandalism. Selling foreclosure homes at a lower price is better than selling them at a little higher price later. They leave the repairs to new owners.
How can you benefit from foreclosures?
Fixer-upper foreclosed homes give you a chance to add value to the property and increase your profit margin. If most of the following questions describe you, then, the fixer-upper buying business is right for you:
- You are short on money.
- You want to buy a house in a good home neighborhood without paying the full price.
- You plan to make a smooth transition to your own real estate business.
- You have some experience in fixing things.
- You enjoy and have the patience to negotiate with sellers.
- You are ready to take some calculated risks.
And finally, You have time to spare for this business, or have family, friends, or professionals to help you for repair and improvement.
No need to quit your current job. You can do it in your spare time!
You can make your fixer-upper business flexible:
- You can do it in your spare time, on the weekends or evenings. If you cannot do it today, you can do it tomorrow.
- Deal with fixer-upper properties that you can handle with the funds that you have and borrow against the deed of your purchase.
- Try to add value as much as you can.
- Flip them for immediate profits, or keep them for a continual source of revenue in terms of rent.
How to negotiate other items in foreclosure buying?
- How to negotiate the best possible deal to buy homes in short sale
- How to negotiate the best possible deal to buy pre-foreclosure homes?
- How to negotiate the best possible deal in government foreclosures?
- How to negotiate junior liens of pre-foreclosure home?
- Home inspection to negotiate a better price