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Consider Resale Value

Be sure to consider resale value when you buy a foreclosure property, especially if you’re buying in order to “flip” the home rather than live in it yourself. Since many people buy foreclosures as investment properties to be turned around and sold rather than occupied, you want to make sure to consider the factors that may affect resale. Try and look at the house through the eyes of a potential future bidder.

Anything that dates a house will negatively affect its resale value. That is why dusty old brass fixtures and popcorn ceilings are out. Replace the old brass figures with chrome. And hire a contractor to help you get rid the popcorn ceilings, and replace them with surface-textured or traditional flat ceilings.

Other factors that will affect resale value include the location, square footage, and the number of other foreclosed properties in the area. Homes located in neighborhoods with high foreclosure rates are often a tough sell. It is preferable to buy in an area with a low foreclosure rate.

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