Are there any benefits in the foreclosed properties? If the race for such property is anything to go by, they must be great investment vehicles. Foreclosure causes a reduction in property values. To many people, this has become a great window of opportunity to acquire properties at a reasonable price. The benefits of buying a foreclosed home are more than the downsides. This is a good chance for you to become a homeowner. 

Here are some tips to help you when buying a foreclosed property:

1. Scrutinize the price

Determining the real value of a property is important for various reasons. It helps a great deal when you are considering a refinancing loan, investment analysis, real estate taxation, property insurance or when listing your property for sale. However, most investors perform either valuation or appraisal to assess the current value of their properties. Not many people understand the existing differences between the two terms and when to apply each of the concepts.

How does valuation and appraisal compare?

A valuation is a formal assessment of the property’s value, conducted by a qualified and independent appraiser.  On the other hand, an appraisal is carried out by a real estate professional, who understands the area well. The report produced from an appraisal is not legally binding, but it is used to market the property in the real estate arena. Lenders often request a valuation to ascertain that the property is appropriate collateral for the mortgage loan you are asking for. Hence, it is more detailed and it takes into account a number of things such as:

Eddie Murphy’s former Californian Palace

Los Lagos in Granite Bay, California was previously owned by Eddie Murphy, one of the funniest actors Hollywood has seen in the past couple of decades. Aptly named the Crown Jewel of Los Lagos this residence is truly palatial and looks as if it could have belonged to a prince from an Arabian Nights movie. The main home alone is 12600 square foot while the guest house is a generous 5200 square foot. The first impression of the home is a wide paved area with a beautiful fountain at its center. Beyond this is a short, wide set of stairs leading to the entrance of the home with two tall palm trees on either side accompanied by several shorter palms decorated with a string of lights wrapped around their trunks.

The Greenwich Village, New York City Apartment

This is an elegantly refurbished home built in 1846 and is 6800 square feet of stylish, sophisticated elegance. It is a home anyone would be proud to own while still being comfortable to live in. At the last check it was on the market for a mere $22 million. Will it now become the home of another celebrity or a business man seeking a safe haven away from the hustle and bustle of New York City life? Only time will tell.

Lady Gaga Goes OTT

Yes we mere mortals do expect the super stars to go over the top and would probably be disappointed if they didn’t. Familiar as we are with her shock tactics on stage it really comes as a pleasant surprise that the home purchased by Lady Gaga and overlooking Zuma beach in Malibu is surprisingly tasteful and stylish. This is the complete opposite look to what Lady Gaga goes for her in her lavish concerts and is a soft dreamy palate in cream, white and mushroom shades. The outside is subdued and discreet and leads into a wood panelled reception area with a winding staircase protected by a wrought iron banister with an elegant crystal chandelier as a twinkling centerpiece that catches the eye.