Tips For Buying Foreclosed Condominiums

Here are a few tips to make buying a foreclosed condo a smoother, less complicated experience. Be sure to talk to a Robinsons Bank representative to discuss your purchases in detail.

• Check listings thoroughly

  Foreclosed condo listings are available from both private and government financial institutions. Government institutions you may want to check out include the Social Security System (SSS), Home Development Mutual Fund (Pag-IBIG Fund), and National Housing Authority (NHA). Both government-owned banks and private banks such as Robinsons Bank also have listings available. You may also want to check accredited brokers, though this may be more expensive than going direct to a bank. Listings are published in newspapers and online, though these listings are not always up-to-date. You may want to get in touch with a Robinsons Bank representative immediately so you can ask for listings that have not been published yet.

  • Finance your purchase through Robinsons Bank

    You can get financing for your future condo even before you’ve chosen which one you’ll buy. Financing your condo through Robinsons Bank is the smart way to buy your future home or investment. Having a Robinsons Bank plan on hand can help make it easier to buy the condo you want and help you stretch your budget a bit further.

  • Discuss your options with your assigned bank representative

    Purchasing any type of property can be tricky. As foreclosed condominium units are usually sold on an as-is-where-is basis, there is an implication that you need to do your due diligence when purchasing them.

    The history and documents associated with the units you’re considering should be verified to reduce your risks and prevent you from buying a unit that may be too expensive to renovate. By working closely with your Robinsons Bank representative, you will be able to more accurately assess the issues of each unit you’re considering, allowing you to make a better choice.

  • Visit condo auctions

    Listings published on newspapers and online resources are often a bit delayed. By attending property auctions, you will often get access to more updated lists which may even contain the properties best suited for your needs. This can give you a significant advantage over other bidders who don’t personally visit the auctions. By going to these auctions, you’re also able to talk directly to the agents and bank representatives involved, and you can learn much more about the properties and the processes involved in buying them.

  • Visit the property you are eyeing

    A peso amount is one thing, but a condo’s true value to you will only become clear after you visit it yourself. There are many other things to consider that may be important to you but are not always taken into account by the seller.

For example, the walkability of the area might not be a big deal for some buyers but it might be for others. The age and style of the building may also be important for a few people but irrelevant to many more. The appeal of the neighborhood can also be subjective as well.

Visiting the condo can also give you an idea of what needs to be fixed up or what renovations might be necessary, if any. The issues and potential of a unit can be extremely difficult to visualize without at least one personal visit.

• Expect to overshoot your budget

  If you’re planning to purchase a property at an auction, expect to overshoot your budget, especially if it’s an especially desirable property. Good properties will often attract high bids from other buyers and you have to be prepared to do better than those offers (or pay the “buy now” price) to get the property you want.

• Have cash ready

  Cash buyers tend to be given preferential treatment and discounts, even if they only pay cash for the down payment. This is because paying in cash greatly reduces the risk to the bank, which faces a greater risk if the buyer is purchasing through credit. Having cash on hand will, in most cases, simplify the purchase.

• Consider the property’s location

  The peso value of any real estate location hinges more on the location than anything else. If the condo is in a business district or an area that’s projected to have a high amount of economic activity, the prices will generally be somewhat high, regardless of whether it’s a foreclosed property or not.

  Be sure to check out if any infrastructure projects will rise within the vicinity of your desired condo to get an idea of how much it may be worth in the future. For instance, condominiums along the projected Metro Manila Subway Line 9 have seen their property values rise due to the convenience the subway line is expected to add to those developments. Properties along the MRT-7 and the numerous other new infrastructure projects in the Greater Manila Area are also seeing a bump in their property values that will only go up once these are completed.

• Know the fees and taxes charged to foreclosed condo buyers

  Your budget should also account for the many fees that are outside the purchase price of your intended condo unit. As a buyer of a foreclosed unit, you will be expected to pay the following:

  • Transfer taxes

  • Documentary stamps tax

  • Loan fees

  • Registrations fee

  • Notarial and legal fees

Tips on Buying Bank Foreclosed Condominiums

https://www.robinsonsbank.com.ph/acquired-assets/real-estate/condominiums/#:~:text=Foreclosed%20condos%20tend%20to%20be,move%20to%20a%20different%20area.