Buying a foreclosed home is different than a typical resale. In the real estate market today, there are a lot of homes going under foreclosure. This is great if you are an end buyer, first time buyer or an investor, looking for a home at a great price. Below are some of the top 6 tips to remember when you are a thinking or going to buy a foreclosed home.
- Make sure you get pre-approved for a mortgage.
- Find an experienced and knowledgeable real estate agent, and their broker, who understand foreclosures.
- Know about how long it will take to sell a home that is in your price range.
- Have your real estate agent make a Comparative Market Analysis (CMA) of comparable homes in your area and study the sale prices.
- Remember foreclosures are “as is” sales, meaning the homes come as it is without repairs.
- Do a title search to make sure there are no other liens or nonpayments on the house.
Before buying a foreclosed home, you want to make sure you are pre-approved for a mortgage because the seller will want one from you before accepting an offer. There is also very little room for negotiation because the home is being sold to you at a lower price than its true market value. Buyers also have to pay for all the repairs, so do not be frightened or upset when you read this in the paper work. Make sure you get the house inspected because the house may seem like a great find, but when all the repairs add up, it might not be a great deal after all.
Remember that buying a distressed home can be a little difficult, so having an experienced realtor can help you immensely on purchasing a foreclosed home. They are in-tune with the real estate market and can help protect you as a buyer. Have the realtor also do a title search to make sure the mortgage is not the only bill that the owners did not pay on the house. You can have the agent check for tax liens and mechanic liens to make sure the title turns over to you with no other problems or unresolved issues. Buying a foreclosed home in today’s market is great, if you are looking for a home at a great price. Make sure you follow these simple tips to make the process of buying a foreclosed home is easy and smooth.