| Doing the sums is stage two, gathering | | | | work out your offer. That's because once |
| your data quickly and cost effectively | | | | you have a top resale value you can |
| is stage one and that's where online | | | | compare that to the total of all loans |
| foreclosure listings come into their | | | | in default or the minimum bid or reserve |
| own. The challenge to take full | | | | of a property going to auction, to see |
| advantage of today's flood of | | | | if there is any equity. Equity means a |
| foreclosures yet allow for the necessity | | | | level of profit without speculation or |
| to sell back into a depressed market is | | | | excessive risk. |
| not so great for the experienced | | | | Use your same foreclosure listings |
| investor who has a pre-tested method | | | | provider with its home valuation tool, |
| that he flexes according to the | | | | or access several free home valuation |
| particular lead. | | | | tools available on real estate sites to |
| First up fundamentals mean knowing a lot | | | | help you assess true market value. From |
| about the immediate neighborhood, | | | | this figure, deduct your buying costs, |
| knowing the total of the liens recorded | | | | the discount you should expect to get |
| against the property, what stage of the | | | | buying a foreclosure (a minimum of 15% |
| foreclosure process has been reached and | | | | is suggested by some Gurus) and you |
| when. All this data and more is | | | | repair costs and arrive at your offer |
| available in online foreclosure | | | | price. |
| listings. Want to get an idea how much | | | | Just a reminder, this method assumes you |
| time you have to work up the costs of | | | | are a home buyer looking to make the |
| investing in a particular foreclosure, | | | | best of an opportunity to buy a |
| then deciding what to pay? You need | | | | distressed price home and make your |
| access to a summary of the various state | | | | money go further. It assumes you will |
| foreclosure laws that apply (they vary | | | | settle for a while. Otherwise you would |
| considerably); again you will find these | | | | have to factor in your resale costs. |
| available online. Many reputable sites | | | | Another word of caution, stay away from |
| offer search features that give | | | | houses needing structural repairs, or |
| neighborhood demographics that help you | | | | houses in streets and districts with |
| with estimating market value. | | | | clusters of foreclosed bank owned |
| Remember that market value generally | | | | property that have been sitting for a |
| means a home in good shape for its age, | | | | while. Leave those leads to the |
| no repairs needed. Now, you may not be | | | | experienced investor. Identify those |
| intending to buy, fix up and sell this | | | | issues through smart use of foreclosure |
| foreclosure property that's in your | | | | listings. |
| sights, but it sure is a sensible way to | | | | |