One advantage of buying foreclosed properties is that they are usually sold at bargain prices. Since these properties are typically regarded as a “distressed” asset, they are sold at a cost that is much economical than its market value. Banks even offer special terms and rates as an incentive to investors who express interest in purchasing their foreclosures, because this means being able to dispose of the property by the quickest means possible. The faster the foreclosed property sells, the quicker it can be off their non-performing assets book.
Another advantage of investing in foreclosures is the possibility of reselling the property at a price that is much higher than what it was bought for. Many investors are experts at flipping foreclosures, earning them higher returns on their investment. A few improvements on the property can go a long way when reselling the property according to its fair and current market value. Since you are dealing directly with a bank or a lender, you are guaranteed to be working with a reputable seller that is open and transparent in all aspects of the sale. It means getting a clear and real view of the property’s condition and having less trouble when it comes to legal documents.