If you buy a foreclosed home, you're going to have a different experience than you would if you were to just buy a regular home. The main differences are that only one real estate agent is usually involved, pre-approval letters are a necessity, there’s hardly any room to negotiate, and you will buy the house in the current condition. Here are some pointers for buying a foreclosed home:
Get a Mortgage Pre-approval.
You should get a mortgage pre-approval so you can prove that you’re serious about buying a foreclosed home. This letter will tell you how much money you can afford to spend on a house, so it will give you a good idea of where to look and where to not look.
Hire An Agent Who Specializes in Foreclosed Properties.
One of the main reasons why you want to hire an agent who specializes in foreclosed properties is because they often know about listings that haven’t even been publicized yet. You can tell your agent what style of house you are interested in, and he or she can keep an eye out for you along the way.
Estimate How Long It Would Take To Sell A Home In Your Price Bracket
You’ll want to know how long comparable homes in your price bracket take to sell. If the house has been sitting on the market for a while, you can sweep in with a lower offer. However, if similar houses have been selling fast, you should come in with a higher offer as quickly as possible to increase your chances.
Analyze Comparable Home Prices.
You’ll want to analyze comparable home prices so that you can write a competitive offer on the foreclosed property. This will keep you from offering too much or too little money, and will give you a competitive edge.
Keep in Mind That The House is Being Sold As-Is.
The last pointer about buying a foreclosed property is that it will be sold “as is.” This means that you shouldn’t expect any type of discount or financial compensation for damages or repairs that need to be made.
Buying foreclosure properties can be a great option depending on a borrower's expectations and financial history. Give us a call if you need more information, or are unsure of your eligibility.