Quick and Useful Tips for Buying a Foreclosed Home
If you're looking for a good deal on a home, consider foreclosed properties. Lenders of previous owners of foreclosed homes usually just want to dispose of the property and will not hesitate to sell it at a huge discount. As a buyer, you have to understand that the mechanics of buying a foreclosed home are a little different. Here are some tips:
1. Prepare for surprises.
In most cases, a home seller will tell you a lot of things about the property being sold. In fact, if there are any big repairs that need to be done, the current homeowner is actually legally required to tell you about these before you finalize the deal. Lenders, however, don't have histories of the homes they are selling, so if you buy one of these properties, don't expect to be told about any problems. Experts such as Helen Marston can help you out. A foreclosure is likely going to be a good deal, but you may also be in for a lot of surprises.
2. Never assume.
Although you can enjoy a huge discount when you buy a foreclosed home, don't immediately assume that the lender will accept a low offer. Even with the many foreclosed homes being sold in the market today, a bank may opt to wait until prices of homes increase. That could be more explained at http://realestate.wikia.com/wiki/Main_Page. Still, you can bank on local foreclosures. Check the latest prices of properties sold by lenders (also known as real estate-owned or REO sales) to help you determine a good offer.
3. It's not your ordinary home sale.
Banks follow a unique process for selling foreclosed homes and even experienced buyers may not always expect the steps. Banks typically work with Arcadia real estate agents is selling foreclosed homes, and usually, these agents are handling many transactions at a single time. This means they have limited time to give you. Don't expect to be "pampered" by an agent selling a non-foreclosed home, but at least, you can get a good deal. The property may also be protected by the bank's own contract. To ensure that you get a really fair deal, consider hiring a trustworthy building inspector.
4. What you see is what you get.
People who have lost their homes to a foreclosure usually feel like nothing will make a difference. They usually don't mind leaving the house in poor condition. In such a scenario, it is highly possible that the lender will sell the home as it is without making any repairs or improvements. Although this will give you a really significant discount, you should also assess whether or not the cost of repairs evens out with the discounted price.
5. It's a longer process.
Behind majority of mortgages are big banks and other financial institutions. This means you might have to bear with a really long, slow-moving process when buying a foreclosed home. In a traditional home sale, it only takes around a day or two to know whether or not your offer has been accepted. With a foreclosed home, this can well extend up to weeks.