DON'T ALLWAYS BUY THE BIGGEST HOUSE
When reviewing new foreclosure properties notices or records, compare the square footage of each subject property with the average of all other properties within the same neighborhood. Look for the properties that have a total square footage equal to, or less than the "average for the neighborhood" that the subject property is located in.
It is always best to buy the smaller or smallest home within a neighborhood, rather than the largest. Larger homes may be indicative of the "Taj Mahal" syndrome, wherein the structure has been overbuilt for the neighborhood, e.g. a larger than normal addition or second level. The smaller properties within a neighborhood will tend to hold down the value of the "largest". This can often cause a property to end up in foreclosure, wherein the owner obtained a loan from a unwitting bank/lender to build or expand his structure, and then when it came time to sell, or when he faced tougher economic conditions, he was not able to sell the property for what he put into it. He is upside down!
Those properties will usually go back to the bank/lender since they are not worth the value of the loan(s).
Buying the smaller or smallest home in the neighborhood, will provide you with a higher "ceiling" market value, established by the larger homes. With a little cosmetic fix-up or needed repairs, you can typically enhance the value of the property and yield a greater return on your investment, by selling the home near the top of the market value.
We hope this tip was helpful in your foreclosure buying efforts
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