5 Tips When Buying Foreclosed Home

Foreclosed homes are great deals for anyone looking for a house. At times you end up buying an amazing house at incredible discounts. But when you set out to buy a foreclosed home, the procedure for doing that is different from traditional home sales.

Here are a few tips to keep in mind before you make an offer on a foreclosed property

  1. The As-Is Sale: There are homeowners in foreclosure who are so disgruntled that they think they have nothing left to lose. Thus your to-be property is stripped off of anything even remotely valuable which includes door knobs, fixtures, light fittings among others.
    1. If this is the case then the house will be sold to you in “as-is” state.
    2. You can get a great discount on such a house but make sure that it offsets the cost of repairs
  1. Not knowing what you are getting into: When you buy a home, more often than not good homeowners advice you on how to go about the place. If there is possibility of some serious damage then the homeowner is legally required to let you know beforehand.

But this is not the case in a foreclosure. So you have to be cautious and prepared for an unexpected adventure.

  1. Don’t assume they’ll take any offer: A foreclosed home is a good bargain but do not expect the owner to accept any price.

To figure out the correct price of the place take a look at the recent sale prices for homes sold by lenders. These are known as real-estate owned sales.

  1. It takes more time: You need to have a lot of patience before you set out to buy a foreclosed home. The reason is that when you buy a home from an institution the process of accepting your offer takes time as opposed to the time taken in accepting your offer when buying a traditional home.
  1. A different kind of sale: To get a good deal you need to deal with the reduced attention you get from the real estate owners. This is because banks sell foreclosed homes through real estate agents and often these agents are dealing with a dozen foreclosed homes at a time. So they cannot give you dedicated individual attention.

Hire a good building inspector and go along with him or her to find out as much as you can before you buy a foreclosed home.