6 Smart Tips When Buying a Foreclosed Home in the Philippines

Calling in the real estate experts to lend you a helping hand will do you a world of good. Since this is how they make their living, these people are aware of the ins and outs of the entire process. Real estate agents know where to look for properties best, and give you sound advice. They can also refer you to a list of capable lenders from their database, which is the next crucial step.

After choosing an agent to assist you along the way comes getting pre-approved from lenders they recommended. Since many others are also looking into these properties, getting pre-approved by the lenders will assure the property seller that you are capable of settling your future payments. These lenders include the mortgage brokers, banks, and the government-owned Pagtutulungan sa Kinabukasan: Ikaw, Bangko, Industriya at Gobyerno (Pag-IBIG) Fund.

While it may seem that foreclosed properties are only featured online and in newspaper ads, there are actually properties in traditional listings that are worth taking a look at. As a homebuyer, it is your responsibility to make sure you check out all possible sources of listings before making any big decisions. Some sources you can look into are lending institutions, government financing institutions such as Pag-IBIG and the Social Security System (SSS), banks, and the National Housing Authority (NHA).

Aside from public listings, a good way to scope out properties with potential is by attending property auctions, which are usually organized by real estate brokers or banks. Houses during these auctions usually cost less because bidding is allowed giving you the assurance that you won’t overpay for a property. Not only that, you’ll also get to talk to the seller face-to-face where your questions and concerns will be easily answered.

Speaking of auctions, bidding is a handy tool to master when attending one of them. A good strategy to sharpen your skill is by attending as many auctions as you can, but not participating in all of them. Just observe and learn a few tricks during the first few of them until you get the hang of it. And when the time to bid comes, make sure that you’ve researched the property well in order to know a good amount to bid, and have a maximum number in mind to help keep you from going over budget.

You might have thought that the hard work is over after selecting a property, but there is more before finally handing your hard-earned money. After all the preparations and practice comes the most important part: checking the actual property. Foreclosed properties are usually sold “as is, where is”, and since they are pre-owned, no house will be picture perfect. List down the necessary repairs it’ll require. Also, make a budget on how much you’ll be willing to spend to refurbish the property.

Foreclosed homes are a good option when property buying if done rationally and wisely. And if you would remember the tips mentioned above, you will surely encounter lesser mishaps along the way.

Check out our list of real estate properties in the Philippines or browse the Building & Home Furnishing category of the Yoorekka Directory.