The most common foreclosure clean out mistakes people make unnecessarily cost time, money, and effort. The fact of the matter is, a foreclosure clean out isn’t always a straightforward proposition. Each one presents its own sets of challenges, big and small. And unlike a garage organization clean out, it’s going to be somebody else’s stuff you’ll deal with. Not to mention the real possibility of health and safety hazards in and around the house.
Most Common Foreclosure Clean Out Mistakes People Make
Buying a foreclosure generally means getting a good deal. And, as any seasoned property investor will tell you, the money is made at the buy. In other words, the acquisition cost must leave enough difference to cover the rehab expenses, as well as any contingencies. Too many first-time property investors underestimate the amount of work needed to bring a foreclosure back into livable condition. There’s more to it than just the remodeling. Permits, unexpected surprises, upgrades, and more typically come into play.
Renovating and flipping houses is a time-consuming business venture. It can take months to find and buy the right property. Once you own the house, you’ll need to invest time to fix it up. Before you can sell it, you’ll need to schedule inspections to make sure the property complies with applicable building codes. If it doesn’t, you need to spend more time and money to bring it up to par. Next, you’ll need to invest time to sell the property. If you show it to prospective buyers yourself, you’ll spend plenty of time commuting to and from the property and meeting with potential buyers. —Investopedia.com
What’s more, you’ll still have to pay the mortgage, taxes, and insurance. When it’s all added up, it quickly eats into your estimated return-on-investment. You’ll also have to factor in rental home appliance removal and replacement, plus, much more. There are other considerations many people just don’t think about, particularly those who are new to the process. Here are the most common foreclosure clean out mistakes people make you can avoid:
- Not planning ahead. The best practice for a foreclosure clean out is to go room-by-room. A shotgun, uncoordinated approach will drag out the process and cause confusion. You need to create a step-by-step plan to execute in-order so the project goes more fluidly with less hiccups along the way.
- Forgetting to turn on utilities. Believe it or not, some first time property investors or homeowners actually forget to have the utilities turned on prior to starting the rehab. Keep in mind that the house systems (the electrical wiring, plumbing, and climate control) might not be in working condition or function problematically.
- Not having the right equipment. You’ll need a lot of different equipment for a complete foreclosure clean out. These not only include common hand and power tools, but other types of tools and equipment. For instance, a floor scraper, heat gun, and several others as well.
- Not scheduling a pest inspection. It doesn’t matter what type of house it is — new construction, condo, townhouse, resale, short sale, or foreclosure — you have a right to conduct a pest inspection as a contingency or stipulation to going through with the purchase.
- Not scheduling a home inspection. A professional home inspection will do much to alert you to what’s known as “material defects.” These are health and/or safety issues which might or might not devalue the property. Knowing these is very important to your purchasing decision.
If you need a foreclosure cleanout service with plenty of experience, just phone 800-433-1094 or visit Haul Junk Away. We’ll help you with all that junk so you can move forward with your plans.