Buying foreclosed properties in the Philippines became very popular in recent years because of the endless resources readily available to everyone. For buyers and avid investors on foreclosures, it’s the bargain deal that is the hardest to resist. Many even swear by purchasing properties at a steal and flipping them out for profit.  But if you’re a first-time buyer, is it really worth going the extra mile? Here’s what’s to expect ahead so you know what you’re getting into.

KNOW THE REAL BARGAIN

Bank repossession’s objective is to recover the amount of money owed in a short period of time. Thus, they offer the properties at discounted prices or below market value. But this is not true for all. There are also some listed foreclosed properties that come at market prices and sometimes even higher. Not to mention the cost of unpaid taxes or dues that you have to cover in the agreement. This is why it’s a must to work hand in hand with a  professional broker to help you asses and compare the value of the property you’re interested in.

Another important matter you should consider is the cost of repair. Since most foreclosed properties are neglected properties,  some may require major repairs. One way of avoiding this dilemma is conducting a thorough inspection of the property. Although banks offer these properties “as is where is”, having a good look at the property will give you an estimate of the extra costs you need to shell out on top of the sale price.

PREPARE TO DEDICATE TIME AND PATIENCE

One of the roadblocks in purchasing a foreclosed property is the processing and turnover time especially if it’s pre-foreclosure. Some concerns you may need to tackle that may take time are unpaid back taxes, association fees, household bills, counter offers or even legally enforcing a previous owner out of the property if needed. It’s a bit overwhelming, but if you are persevering enough, it can surely be done.

BE CLEAR WITH YOUR PURPOSE

If you’re on a tight budget and buying a foreclosed property is the closest thing to making your dreams a reality, then it’s best to be extra meticulous. Spend enough time studying your options and seek advice from trusted professionals.

If you’re experimenting and trying to invest in one for flipping, there are also several resources you can delve on before taking the plunge. There are also seminars and workshops you can attend if this is something you want to explore.

If you want to check out listings of foreclosed properties, the easiest route is to seek the assistance of accredited brokers and brokerages who market foreclosed assets. Or you can directly go to banks, Pag-IBIG Fund, SSS and other lending institutions. Most of these listings are also available in their online portals.

Are you currently looking for potential property investments? Head over to OnePropertee listings page and check out some of the top properties that match your location and budget. Happy home hunting!