The recession is past us and the economy has been improving by leaps and bounds. After the mortgage crisis, the real estate market has been improving slowly. Construction is on the increase, and new houses are available for sale. Jobs have also become secure and salaries have increased slowly.
In fact, couples and families are now actively contemplating buying a home, as real estate prices are still low. However, before you invest in a new real estate property, a quick look at the pre-foreclosure market indicates that pre-foreclosures are a great place to find affordable property.
Why Pre-Foreclosures?
The reasoning for this is simple. Yes, the recession is past us, and the mortgage crisis of 2008 is over. But there will always be homeowners who are struggling with a variable interest rate on their mortgages. The real estate market is improving and industry watchers like Jeff Adams state the current mortgage rate will increase to about 5% by the end of 2015. Homeowners who have not yet managed to find secure jobs will again find it difficult to pay off their loans.
As a result, pre-foreclosures will not increase but investors and first-time homeowners will be able to find property for purchase at a much more affordable rate than new homes.
How Do You Cash Into This Market and Find a Home For Yourself?
Jeff Adams #1 Real Estate Trainer states that pre-foreclosure market is slight different from investing in foreclosed property and new properties. He recommends that you follow these few tips to protect yourself.
- Use as many resources as possible to research a particular area. Before you actually buy a real estate property, you should have a locality in mind. Remember, you are investing in pre-foreclosure property but you want to stay in the home, not resell it for a profit. As a result, the area should have schools, markets, malls and other amenities that will help you and your family in your day-to-day life.
- Once you have found a good area, it’s time to find properties in pre-foreclosure. Pre-foreclosure notices are usually given by banks to the county office, newspapers, and foreclosure websites. You can also use a paid aggregator website to find good properties.
- Once you have homes listed, it’s time for a drive-by and chats with owner in default. As owners are still in residence you have to make the owner think about selling his property. This is possible only if you look over the home and produce a quote that is too good to be refused by the owner.
However, a word of caution: pre-foreclosed properties are still owned by the homeowner and they may refuse to sell. In that case, you have to move on and find another property to invest in. He cautions homeowner from becoming emotionally invested in a property and states that there are many properties for sale in today’s real estate market.
All you have to do is research an area and educate yourself. Sooner or later, you will come across a wonderful, affordable real estate property that is just right for your budget for maximum profits.
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