Foreclosures are by far the most requested properties that our clients want to see. These bank owned properties can be real steals as long as you educate yourself and realize that a low price is great but should not be your only concern. Most of the time, “you get what you pay for”. If there are several bank owned homes in an area that you are interested in, go through all of them. Many of these will need major repairs and many won’t. You may actually get a better deal on a home that is priced higher but has no major damage and is in “move in” condition. Not everyone can spend the time and money needed to fix up a home. Take your time and look at all your options before you decide on the best value for your money. The timing is great during the holidays to make an offer so use it to your advantage. Here are the things to consider when buying a foreclosure.
- Do the comparable sales in the area to justify the price you are willing to pay? If the home is priced much lower than the comparables and there are several other offers, this home probably will sell for more than the asking price.
- Are you willing to buy the property “As is” ? You will have to sign a disclosure that you give up all your rights and accept the home in its current condition. You will have a due-diligence period and we highly recommend that you have a home inspector check the condition of the property.
- Are you willing to keep the property 3 to 5 years? Most experts agree that the market will continue to increase during this time.
- If the property is damaged or in need of repair, can you do the work yourself? If you can, you will save money and have control of the project. If you need to hire a contractor, your costs will go up dramatically.
- If you want to just get a feel for the market, stay on our website and we will continue to send you daily updates for all foreclosures that come on the MLS.