I'm considering buying a small house at a sheriff's sale, but I'm not allowed to inspect the inside. I would be a potentially great investment.
2006-07-22 01:40:03 · 8 answers · asked by nickacarroll 2 in Business & Finance ➔ Renting & Real Estate
Homes sold through a sheriff's sale are homes that have been foreclosed on.
The sheriff is acting on behalf of the lender and has no partricular interest in the home except to serve the occupant with the eviction notice.
The most you can do it look at the outside of the home and perhaps through the windows. Hopefully that will give you some idea as to the condition of the home.
It is a crap shoot, however, if you do some investigating on your own, you could make a wise purchase.
You can log on to zillow.com and get a aerial view of the property as well as the price of the homes that have sold around it. Understand, if this home is in an area that has not had recent sales, the price will not be accurate, its just a method to get an idea of the value.
If you see a $200,000 house for sale, depending on the obvious condition, you could bid anywhere from $75,000 - $200,000.
The lender just wants as much money as they can recover from the property. The home could be valued at $350,000, with $200,000 remaining on the mortgage.
I have made as little as $2,500, and as much as $125,000.
If you or someone you know is a good handyman, you have a better chance to increase your profits. If not, your better off passing on these sales. Repair costs can be 50% higher if an unrelated party is used to make the repairs.
Your right in thinking it could be a POTENTIALLY great investment, but only if you follow the above mentioned guidelines.
Good hunting.
2006-07-22 02:30:46 · answer #1 · answered by Nick R 3 · 2⤊ 0⤋
Sounds kinda fishy- have you asked why they don't want you to look inside?
Check the documentation- age and condition of the furanace and duct-work, the water-heater and plumbing. See if any other appliances are included- fridge, AC, range, microwave, dishwasher, etc.
Find out what you can about the history of the home- Who lived there last? (or at least what kind of person they were) Why is it available through a sheriff sale?
I don't know that I would want to buy a house- unseen. Let the Sheriff Dept know that it would be stupid for ANYONE to buy that house without seeing the inside... "Mr Sheriff- would you buy a home if you hadn't seen the inside? Then why are you expecting anyone else to be that unwise/foolish/stupid?"
If they do finally let you in, check the windows and doors- no drafts or leaks, please!! Check woodwork and floors- squeaky floors means age or damage or both... Smell in the cabinets- especially under the kitchen and bathroom sinks- you don't want mildew- sign of plumbing trouble.
I don't think I would buy a home when I hadn't see the inside... Real estate is a pretty big purchase!
"Buyer-beware!"
2006-07-22 01:58:21 · answer #2 · answered by Yoda's Duck 6 · 0⤊ 0⤋
I looked into doing that several years ago. The house I saw was completely trashed and there was about 8 inches of standing water in the basement. I'm sure all of them are not like that, but I shudder to think what a house that can't be inspected would look like after seeing the one I was allowed in. Plus, the way I see it, if it's that "great a deal" someone on the inside would have snatched it up before it hit the public market.
2006-07-22 01:44:57 · answer #3 · answered by Anonymous · 0⤊ 0⤋
warning is the substantial notice. regulations are distinctive no longer in straightforward terms state to state yet county to county. examine for liens and back taxes. If any and you do purchase, then you definitely very own those money owed besides. Get those subject concerns resolved basically before purchase. some aspects require a down cost and could enable a private loan. Many lending agencies won't provide a private loan for this sort of sale. it relatively is not saying you won't have the ability to locate one.different circumstances evaluate an entire cost (unmortgageable). inspect all the large print. be beneficial to get a identify seek performed on the valuables and a cutting-edge survey map. examine for easements and rights of way. additionally examine if the land has been slated for confiscation under Eminent area regulations. you may result having to sell quickly once you purchase at a plenty low value. Having a criminal professional (genuine property) on board is a solid thought besides. some counties and townships furnish, for a cost of direction, an expeditor to try this with you. solid success, be beneficial to hide you tail.
2016-10-08 04:56:37 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Also check to see whether you really get clear title, or if as in some sales, you get title after a grace period in which the owner can pay their back taxes. Varies by locality.
2006-07-22 02:36:33 · answer #5 · answered by indiana_crank 3 · 0⤊ 0⤋
Could be great, could be a real mess and need expensive work. You could also end up owning a house with a crazy former owner out to get you.
That's why it is so cheap!
2006-07-22 01:45:30 · answer #6 · answered by pondering_it_all 4 · 1⤊ 0⤋
buying blindly is not the way to go.
2006-07-22 01:49:08 · answer #7 · answered by norwood 6 · 1⤊ 0⤋
why not they are there to protect and serve
2006-07-22 01:43:54 · answer #8 · answered by Thomas P 3 · 0⤊ 0⤋