When going to invest in foreclosure real estate, it is important to know how to evaluate a foreclosure. Get it now with this presentation from ForeclosureDeals.com.

1. [Volume 1, Issue 5]
How to
Evaluate a
Foreclosure
Though foreclosures can be really cheap, not all Contents
foreclosures are bargains. Some are overpriced and Introduction ..…………………………...1
some can be in a poor condition. There are stories of
Area……………....………......…………...2
buyers over-capitalizing in terms of purchase price
or repair costs, and sometimes even in terms of both. An Honest Deal………………………….2
When that happens, the chances are good that they
Property Condition…………………...2
could lose their hard-earned money. That’s why it is
important to know how to evaluate a foreclosure Price…………………..………………….....3
before deciding to purchase one.

2. 2
Area
Is it in a good neighborhood? What are recent average
prices? Every area has a price ceiling, and nobody is likely to
pay more. Make sure that the repair costs added to the
purchase price plus a reasonable profit margin all add up to
a price within the local range.
An Honest Deal
Is it an honest deal? This is not as odd a question as it sounds.
People have paid deposits to cowboys, sold homes they did not
own, failed to declare major deal breakers and a whole lot
more besides. Keep your eyes and ears open, and your radar
turned on.
What’s does that mean? Property Condition
For more terms and definitions,
check out ForeclosureDeals.com’s
glossary page:
http://www.foreclosuredeals.com/G
Is the Property in Fair Condition? Whether you are buying to flip
lossary.php
on or occupy, you need to estimate the repair costs that you will
probably have to pay for in cash. Do not just check for cosmetic
defects; check for signs of infestations, subsidence and roof-sag
too.

3. 3
Price
Foreclosure Deals
12550 Biscayne Blvd, Suite 306 Is the Price Reasonable Overall? Never allow yourself to
Miami, FL 33181
FAX: 1-347-402-6620 agree a purchase based on your feelings at the time. By all
Contact@foreclosuredeals.com
means secure an option, but do return at least twice to look
If it’s not a deal, we won’t list it here!
more carefully before you finally sign. A good friend is a
Find us on the Web:
http://www.ForeclosureDeals.com/ useful ally in this regard.
There are many potholes on the road to buying a
foreclosure. The art of doing this wisely includes a
thorough evaluation. If you do complete this process
properly, and you can afford the purchase price, you will
certainly buy a bargain, getting savings in the purchase and
huge profits when prices turn.