A home that is in the pre-foreclosure stage is still in the process of transferring the title to the homeowner. This stage can be a good time for buyers to purchase homes because the previous owner and lender are looking to pay off as much of the home as they possibly can. Therefore, as a buyer, you may be able to get a good deal on a home that is in your price range. Part of buying a pre-foreclosure home relies on determining the value of the home. Homes that are in pre-foreclosure can be a bit difficult to value because there is still a large amount of money that is owed on the home. As a result, it is important to find out how much the home is worth in order to avoid overpaying for your property.
Check Public Records on the Home
The public records for each home in a city not only lay out who owns the home, but the record also gives you a clear idea of how much is owed on the home. This information is usually publicized when there are tax liens and outstanding payments on the home. This information will give you a better idea of how much you will need to pay for the home. While a pre-foreclosure home may sell for a certain amount at auction, this amount does not account for any outstanding debts that the home has. Therefore, if you end up purchasing the home you will have to make these additional payments. How much is still owed the home will determine how much you are willing to spend.
Ask Local Realtors for the Previous Sale Price of the Home
While the value of homes can change from year to year, it is a good idea to have a general figure of how much the home was most recently sold for. This figure will tell you whether the home was sold at market value, under market value or above. Having this additional information will give you a better idea of what your home can sell for in the future. You can contact local real estate agents in the area where the pre-foreclosed home is located in order to see what it was most recently sold for.
Purchasing a pre-foreclosed home can be a huge investment if you take the time to research the value of the home. Therefore, use these tips to help you determine the value of your pre-foreclosed home. Contact a business, such as Keith Marshall Real Estate, for more information.