While foreclosed properties are not on the top choices of Filipinos buying their homes, many are now seeing this option as a viable investment choice. Growing interest is being put into foreclosures primarily because it is sold below their actual market value. Aside from homebuyers, investors are also eyeing this kind of property, turning them into leasable and sellable units.
Now, after doing some of your preliminary research, you’ve finally decided to invest in a foreclosed property. The next question is, how do you find one?
Attend property auctions
Buying a foreclosed property, like any other property investment, takes a lot of effort and considerations. It is not as easy as it seems, and you also need to do your due diligence to make sure you get the most out of it.
One effective way to be able to score a diamond in a sea of foreclosed properties is to attend property auctions. These are usually hosted by banks and real estate brokerages, and the properties on auction are not usually on listing platforms. Through auctions, you’ll also be able to familiarize yourself with the process of buying a foreclosed property with the help and guidance of real estate agents present in the auction.
Auctions are usually on a first-come first-serve basis so sign up early.
Work with accredited agents
Again, buying foreclosed property is not that easy as it seems. You’d have to be hands on and careful with assessing the property completely to make sure that there would be no complications moving forward. While some prefer to engage directly with the purchase of the property, some still resort to having an agent take care of the complexities of the buying process. It also gives them a peace of mind knowing that the agent can assist with the inspection and verification of documents for the purchase.
Practically speaking, working with an accredited broker helps you arrive at a more sound decision when it comes to foreclosed properties.
Look for good resources
As a buyer, part of your due diligence is to make sure you have enough knowledge to dig into the world of foreclosures. You ought to read articles about it, get insights from notable people in the industry, or even join forums and discussions about the field.
When it comes to foreclosure in the Philippines, Noli Alleje, known in the real estate industry as El Subastahero, automatically comes into mind. He is the number one auctioneer in the country, and pioneered the auction sales system where he was able to bid out over 4,000 real estate assets worth more than P8 billion all over the Philippines. If you want to learn from the genius in the likes of the El Subastahero, you may check out the Youtube channel The Property Forum Phils. Inc. (https://www.youtube.com/channel/UCab3yBHfGts6n5tsTL6PQ3w)
Motivated to invest in foreclosures? Like in all things – may it be investment, career, or family, you’d have to exert time, effort, and all the hard work before you reap the rewards. Best of luck!
References
Nine tips for buying foreclosed properties. (2016). In Lamudi. Retrieved from https://www.lamudi.com.ph/journal/nine-tips-for-buying-foreclosed-properties/
Noli Alleje. (2018). In Real Estate Investing Summit. Retrieved from https://money-summit.com/REIS/speakers/noli-alleje/Your guide to buying foreclosed properties. (2018). In Lamudi. Retrieved from https://www.lamudi.com.ph/journal/guide-buying-foreclosed-properties/