Buyer Beware: 5 Tips for Buying a Foreclosed Property
In today’s real estate market, foreclosures are everywhere. While current homeowners suffer from the amount of foreclosures, prospective buyers can cash in on a property at a low price. It is crucial for prospective buyers to consider the differences between a foreclosed property and non-foreclosed property, and how those differences can impact their future home. Here are 5 tips for those looking to buy a foreclosed property:
Look beyond the price tag
While foreclosed properties can be purchased at low prices, typically there is more to consider with that low price tag. Most times, foreclosed properties need additional work and updating which can lead to more money being put into the property. Be sure to budget accordingly for any updates or work that needs to be done to the property.
Have an InspectionDo your homework
Banks are sometimes anxious to get a foreclosed property off their hands. That being said, purchasing a foreclosed property can sometimes be a rushed process. During the home buying process, prospective home buyers should never skip a home inspection, especially on a foreclosed property. Inspections can uncover additional problems with the property that can lead to additional expenses or problems later.
It is important to do your homework on the prospective property, but also on the surrounding area. Buying in an area densely populated with foreclosures or with high crime, may lead to never recouping the value of the home or any repairs you put in to it.
Work with an Agent Familiar with Foreclosed Properties
Most banks have designated agents they use for foreclosure deals. Getting in touch with these agents can give you access to foreclosed properties that aren’t even listed yet. When you look for a foreclosed property, it is just as important to look for an agent as your combing through the listings.
With any potential home purchase, whether it’s a foreclosed property or not, a pre-approval is a key component to a successful purchase. Getting pre-approved
shows the seller that you are a serious buyer, and that you can afford the property they are selling. United Home Loans offers free pre-approvals and can guide potential buyers through the home buying process.