Reader Question:

Is purchasing a foreclosed property really the best idea right now?  Shouldn’t we hold off and see what the market does?  I would have to think some cities are coming back quicker than others, but how about our country as a whole?

Answer:

There are many factors to consider when looking at a foreclosed property. Here are some questions you should take into consideration when considering a foreclosed home:

* What type of shape or condition is it in?
* What is the neighborhood like?
* Are there other foreclosures in the area?
* How much would it cost to bring it up to a livable condition?
* Are there signs of mold?
* How about energy efficiency?
* What is the SEER rating for the AC system?
* Does it have dual pane low-e windows?
* It is Energy Star qualified?  (A home build ten years ago would require about double the energy costs of today’s new Energy Star home.)
* What type of warranty does it have?

Consider the answers to these questions before purchasing a home in foreclosure. If you have additional questions, feel free to leave us a comment.