How to Buy & Sell Foreclosure Homes

Searching for Foreclosures

• Search for homes in foreclosure. You can advertise on the Web or place a local classified ad looking to save homeowners from foreclosure by purchasing their homes. If you prefer, you can contact a real estate agent with foreclosure experience for a listing of foreclosed homes in your area. Check the newspaper or search online for short-sale homes. You must qualify to be eligible to purchase a short-sale home. The short sale typically needs to close within 30 days.
  
  

Submitting an Offer

• In order to submit any offer on a foreclosure home, you will need to have your prequalification letter from a lending institution. Once you are approved, be sure to make copies of the approval letter. Foreclosure homes are sold as is, in most cases. Any repairs are the responsibility of the homebuyer. You may want to hire an inspector to make sure the home is worth the investment. If you are working with a real estate agent, he will be able to assist you with making the offer. If not, you will need to contact the homeowner's real estate agent to submit the offer in writing.
  
  

Make Repairs

• Repair any damage. Before you can sell the home, you will need to make necessary repairs and renovations if you want to make a profit. Consider hiring a contractor for major renovations or a handyman for minor repairs. If you really want to save, repair the home yourself. Make sure the home will pass inspection.
  
  

Wait for the Best Time to Sell

• In order to turn the property into an investment, you may want to wait for the real estate market to improve. Foreclosure homes can be good investments. You may want to wait until the value of the home increases before selling the home or until market conditions improve. You can consider renting out the home in the meantime.
  
  

List the Home on the Market

• You can list the home with a real estate company or sell the home yourself. Consider the types of loans you are willing to except. Designate the terms of the sale and the contributions you are willing to make toward the sale. For example, some sellers offer creative financing and contribute toward closing costs. Some sellers even offer home warranties to entice buyers.