Are you looking to get into real estate investments? Do you want to get your money to work for you by buying and selling properties at a premium? If so, then you’re in the right place.
One of the best ways to make money with real estate is to leverage the power of buying foreclosures at reduced prices and reselling them for more money. In this article, we’ll teach you everything you need to know about buying foreclosures in Pittsburgh, PA, and reselling them for a high ROI.
Table of Contents
The first thing that you need to know about foreclosures is that a foreclosure is actually a process. A house doesn’t immediately move from a defaulted mortgage into a foreclosed status.
Instead, there is a period when the house will actually be in a pre-foreclosed status. During this period, the bank has the legal ability to foreclose on the home, but they haven’t signed the paperwork yet to transfer ownership.
What this means for you is that you need to be looking for pre-foreclosed homes that aren’t yet on the market. This will allow you to scope out the location and get offers in before any other competitor of yours tries to get their foot in the door.
Read more about identifying the right homes to buy here.
Have Cash Ready
Most homebuyers in Pittsburgh that are looking to purchase a foreclosed home buy the house in cash. There are a few reasons for this.
One, when you own the home outright, the selling process once you’ve identified another buyer for the home is going to be far simpler. Secondly, the price of the home is typically far lower than the market value, making it easier to bring an all-out cash purchase into the process.
Know Pittsburgh Property Taxes
The next thing to consider is the property taxes that exist in the different districts of Pittsburgh. Depending on the locale that you purchase property in, your tax liability will be very different.
Make sure that you factor this into the costs that you will absorb as you purchase the home.
Keep in Mind Additional Costs
Last but certainly not least, it’s also important to keep in mind all of the additional costs that you will absorb over the duration that you own the property.
For one, you will likely need to do some shoring up to the property itself to get it into saleable condition. This could include hiring contractors, spending man-hours staging the property with furniture, and the like.
Secondly, also consider listing fees. When you list the home for sale, chances are that you will have to work with a realtor and will incur some level of expenses during that process.
Foreclosures in Pittsburgh, Made Easy
There you have it. Equipped with this guide to foreclosures in Pittsburgh, you should now be far better equipped to make wise real estate investments and buy the right homes in your area.
For more real estate advice, be sure to check out the rest of the articles available on the website!