A foreclosed home purchase is a controversial choice that definitely comes with advantages and disadvantages. Buyers interested in preaching a foreclosure home should consider the pros, cons, and real estate tips for a successful bid.
Buyers expecting more for less money should reach out to foreclosed homes; foreclosed homes are affordable. Since foreclosed homes come in various styles and sizes, it is possible to find the dream home without paying the expensive price tag. Besides, some homes (not all) added desirable upgrades to the interior and exterior.
Foreclosed homes sound too-good-to-be-true, and it usually is. For starters, foreclosed homes are lender, government, or bank-owned, which contains tough restrictions for buyers aiming for homeownership. Some homes (not all) contain unexpected predicaments such as liens, debt, and home damage. Most foreclosure homes are as-is, meaning the buyer receives the home with no repairs or upgrades. The competition is stiff due to the lower cost. Last, previous homeowners who lived there could cause trouble before and after eviction notices.
The foreclosure process is a lengthier process than a standard real estate buying process due to legal, government, and/or lender/bank issues. The lengthy process is unpredictable, meaning the results will range from financing trouble to abrupt cancellations.
Buyers braving the foreclosed environment will need to navigate the waters like professionals. Relying on traditional agents to understand the foreclosure process is a gamble. An agent specializing in real estate foreclosure is the best solution to avoiding common pitfalls. Since two foreclosed homes aren’t the same, the best agents can find the best homes with little red tape to go through.
Additionally, buyers should do independent research on homes. Figure out what pitfalls occur in the home. Compare the total amount (i.e., $200,000) to a home of the same value to determine if the home price plus the additional expenses is worth the trouble. As always, examine the neighborhoods for crime and noise activity. In the same vein, examine the foreclosed homes in the area; too many foreclosed homes present a bad image of the neighborhood.
In closing, there’s no right or wrong answer when dealing with foreclosure homes. We want to make sure you understand the challenges surrounding foreclosure. We also hope you take the real estate tips to heart.