Tips to Purchase a Kalamazoo Foreclosure

Everyone knows that there is a tide of foreclosed properties in the housing market.  But there is a perhaps once-in-a-lifetime opportunity in the gloomy headlines.  This is an amazing time to buy up foreclosed properties at ultra-low prices.
Would-be homeowners should not miss this opportunity!   This may be an ideal time to think about the dream of first-time home ownership. There are certainly opportunities to wade into the foreclosure market and came out ahead.  For people who have been renting all their life — this may be the break they need.   We have helped some renters get into houses of their OWN for LESS than the cost of their rent — including taxes and insurance!
We are working with a couple of investors who are looking to purchase some rental properties right now too. It is a great time to consider this and, when you work with the Veenstra Team, you get some additional value.  We have just helped a family purchase their first duplex and we have also provided ALL the rental forms that they need to be successful as a new landlord along with some great training to ensure that they get off on the right foot in their rental business.
We do have 9 tips for buyers of foreclosure properties…..
Kalamazoo Foreclosure Buyer Tip 1 -Call the Veenstra Team  or click on this link to set up a personal website for yourself so you will be alerted as soon as hot properties come on the market.  This is a free service and we are glad to do it for you.  You can do home searches of all the homes available for sale in the greater Kalamazoo market when you go on our website www.Kalamazoo-real-estate.com, BUT we don’t want you to miss the hot deals and if we set up a website for you, you will be alerted by email any matches come on the market.  You can then call us and see it if it looks like the right opportunity.
Kalamazoo Foreclosure Buyer Tip 2 – Budget carefully.  Don’t let a small price tag lure you into
a deal that might come back to bite you.  Be sure to ask yourself: Do I have the money for the
repairs needed?   If you plan to rehab and then rent, can you afford the house if you don’t find a tenant? If you do your homework and make wise decisions, there’s little risk,”
Kalamazoo Foreclosure Buyer Tip 3 – See the house for yourself.  Don’t buy a house sight unseen. If you’re an investor from Chicago and you’re buying in Kalamazoo you’ll need someone to evaluate the house in person.
Kalamazoo Foreclosure Buyer Tip 4 • Make sure you don’t over-improve for the neighborhood.  Your homework should include evaluating the value of the other homes in the neighborhood. You
may not be able to recoup the cost of the repair or improvements in certain areas.  The Veenstra Team is able to help you determine the real estate market trends for the neighborhood.  This research is essential when you are considering a purchase.
Kalamazoo Foreclosure Buyer Tip 5 -Take note of how long the house been empty and plan accordingly.   If a home has not been “mothballed” carefully you may run into some additional problems which you should plan for.  A home inspection with a certified home inspector WHILE THE UTILTIES ARE TURNED ON should alert you to any potential problems.
Kalamazoo Foreclosure Buyer Tip 6 – Was it winterized properly?  Be sure that someone is present when the utilities are turned on so that you can immediately respond to any potential problems, like cracked pipes etc.
Kalamazoo Foreclosure Buyer Tip 7 – Look at the landscaping to see if untrimmed trees, vines, bushes, etc have contributed to the deterioration of the house.
Kalamazoo Foreclosure Buyer Tip 8 – Make sure you get a private home inspection by an ASHI certified inspector.   Banks generally require a home inspection when lending
money for a mortgage. But even if you are the one completely out of pocket – the home inspection should not be passed over.  It may save you thousands of repair bills later….AND, if you are present with the home inspector you will get a 2-3 hour private tutoring session about the home!

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Kalamazoo Foreclosure Buyer Tip 9- Consider a HUD house. The Department of Housing and Urban Development is currently holding approximately thousands of  houses whose previous owners held mortgages insured by the federal government. HUD houses go to market about six months after foreclosure. Local governments get the first option to buy. After that, buyers who pledge to live in the house have the
first opportunity to offer a bid. If the house is still on the market after a period of about 10 days, the
listing is opened to investors. Owner occupants end up with about half of HUD’s properties,
according to HUD officials.  IF YOU ARE A TEACHER, FIREFIGHTER, EMERGENCY MED TECH or POLICE, you can purchase a home for 1/2 price!  Ask the Veenstra Team for more details!
Kalamazoo Foreclosure Buyer Tip 10 – Don’t expect to profit from a quick sale.  Investors who buy intending to do as little as possible to a house, hoping to resell for a profit when the market turns around, may find little profit and a lot of headache.   Generally investors are a welcome and all-too-scarce resource, and most are fixing up the houses they buy for rent or resell. What’s more, investors and new owner occupants will get the satisfaction of helping to turn another house around!

Thanks for reading!
Your Kalamazoo Real Estate Experts and Home Team
David Veenstra, REALTOR
Jason Veenstra, REALTOR

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