Is buying foreclosure real estate a good investment?
Buying a foreclosed home at a discounted price and later reselling the property for a profit is a good investment, but you need to know what you are doing in order to make a profit. It’s not as simple as buying a foreclosed property, turning around and selling it the next day for a profit. There is a lot more involved. First, you need to understand the value of the foreclosed property in its market. You can seek out the advice of real estate agents to help in this assessment. You should look at how similar homes are doing on the market in the area, their selling price as well as time on the market. You don’t want to buy a foreclosure in an area that isn’t selling. But if comparable houses are selling in the area, then this may be a good investment. Along with a real estate agent, make an assessment of the true value of the foreclosed property. You need to consider the condition of the property in making this assessment. You also need to make sure that the property is clear of all legal
