Valuable Information from Neighbors When Buying Foreclosure For Sale

by Simon Lindsay on Foreclosures

Just driving down the streets will tell you so much before even buying foreclosure for sale. Check out the exterior of the homes in the neighborhood as well as their lawns or porches, well kept homes are indicative of a thriving community. Otherwise passing through signs upon signs of foreclosure is not a good thing as it implies that the value of homes in the area are declining.

If you intend to live in a new neighborhood after buying foreclosure for sale, it is wise to learn about your surroundings first-hand so that you will have a good idea of what to expect. Another name for this inquisitiveness is due diligence.

Chatting Up the Neighbors

Spotting the most ideal repossessed home is always a good move for buyers as they get to save money due to the low price tags on these types of homes. Money that could go to increasing their equity. However a low price tag should not be the main thing on any home buyer's list. There are insights to be gained from conversing with neighbors that can weigh heavily on the final decision buyers will make.

What if you found out that the home you are considering has a basement that easily gets flooded and the remedy that the former owners applied is a sump pump to drain flood water directly to the yard. Keep in mind that sellers are under no obligation to disclose this kind of information.

You may also discover that people in the neighborhood are rude and unkind. This is a less than ideal situation especially if you plan on living in the home and become the newest member of a cold neighborhood.

When you start your interview with neighbors, make it clear that you are considering to live among them and would appreciate a little history on the community. Ask about employment opportunities, school systems, recreational facilities and crime rates. Also ask their opinion on what is good or bad about the neighborhood. You can also ask questions about the former occupants of the home you are buying. While some people might be turned off by your sleuthing, you will find that others are only too willing to give you the low down especially if you tell them that you plan to move in.

As long as you do not come on too strongly, speaking with neighbors before buying foreclosure for sale can be a good learning experience for you, as well as a major factor in your decision-making. The information you gain can also be quantified and can be factored in when determining the real value of the home.

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