Homes that are in foreclosure may seem like a great opportunity to get a new home at a very low price. But most of these properties come with a “buyer beware” tag and are going to require a lot of work and money. If you aren’t in the business of flipping these cheap properties to sell for profit you may find yourself in over your head. Before you decide on buying a foreclosure, follow some of these tips for the process of purchasing and then fixing up your potential dream home. We experts in helping your buy and sell homes. Get in touch with Doorsteps today to learn more about purchasing your new home.
Tips for buying
- Look past the buying price. While the low price may seem extremely appealing and easy on the budget look into what the cost for repairing will be. Depending on the amount repairs and updating need you could easily max out your budget even with the cheapest list price. It’s wise to have an inspection before you decide to buy.
- Don’t buy sight unseen. You can purchase a foreclosure without every looking at the property in person. Unfortunately, when going this route you aren’t able to assess the amount of damage and how much work will be needed. It’s best to check out the home in person and decide if you are willing and able to commit to the project.
- Be ready for a long purchasing process. Foreclosures unlike regular mortgages require more paperwork and longer periods of time to clear for a closed sale. If you are in a hurry to purchase a home and get settled a foreclosure is probably not for you. Getting preapproved for a non-conventional loan to purchase a foreclosed property can help make the process go smoothly.
- The final sale is “as-is” This should be common knowledge but make sure you understand this concept. There are no contingency contracts or asking the seller to update or repair anything. When you decide to make an offer on a foreclosure what you see is what your buy.
- Get some legal aid. You may want to have some money saved back in case there are any legal issues when purchasing a foreclosed property. Some owners can come back and try to regain possession. Having a legal representative can help to navigate these waters when and if your sale gets tricky.