Houses in poor condition might fetch bargain prices, but repairs can boost the cost again. The more you learn about the home, the more realistic your purchase offer can be. The best thing you can do if you're considering a foreclosure is to have it inspected.

If you have to replace copper pipes, sheetrock, flooring, and appliances, you're looking at major expenses. The "bargain" you thought you had could turn into a very expensive investment.

If you can spiff up the home with a coat of paint and some landscaping and reasonably offer it at market rates, your post-purchase expenses will be small and you can afford a higher bid.

Very often the utilities may have been switched off because of none payment of the previous bills. This effectively means you cannot check to see if the most important features such as water, electricity, A/C, plumbing, heating, appliances, pool, spa, security system, and garage door openers work correctly.

It is a good idea to arrange with the appropriate authorities to have the services switched on for a minimal period for testing. Have everything turned on because that's when you might start seeing things that are wrong like leaks and electrical problems. You could see problems with the furnace or the water heater.

Foreclosures can be a great investment, just be sure to check the property out so you know what you are getting.