When you're looking at house listings, it may not seem much different to purchase a foreclosed home than any other type of home on the market. The truth is that there are a few steps you need to take when you purchase a home that has been foreclosed on. This guide will provide you with some helpful tips for accomplishing your goal of purchasing a home that has been previously foreclosed on by the owner.
1. Work with a Real-Estate Agent Experienced with Foreclosures
An experienced real-estate agent will help you navigate the process of buying a foreclosed home. You can expect to go through a lot of paperwork, and a real-estate agent will be the perfect liaison for helping you.
2. Talk to the Neighbors
Visiting the neighborhood isn't really enough when you want to purchase a home. Talking to the neighbors gives you more perspective, especially regarding the home's history.
3. Hire an Inspector
Inspection is an important part of the home-buying process. Hire an independent inspector to take a look at the house to find even the least obvious issues with the home.
4. Don't Let Price Tag Detract from Repair Costs
Even homes with a small price tag can come with big price tags if they need repairs. The inspector will help you determine which repairs will be important if you follow through with the purchase.
5. Consider the Length of Vacancy
When houses are vacant for long periods of time, they may experience more damage and potentially even vandalism. Certain homes may have more damage than others.
6. Buying from a Bank Is Impersonal
If you are expecting a personal experience when you buy, you should not expect this from a foreclosed home. When you purchase a foreclosed home, you are participating in a transaction with the bank. You may not have the previous owner to ask questions from. You are not dealing with sellers who might be very motivated to sell, so responses may not be as immediate as they would be if you were buying a different home.
7. Information May Not Be Disclosed
Disclosures are often not a part of a the process of buying a foreclosed home. You cannot ask a seller questions about the neighborhood or the home, and you may not receive as much history as you hope.
Sometimes, the perfect home for you very well may be a foreclosed option. There is absolutely nothing wrong with purchasing the right home for you. A real-estate agent can help you achieve your dream of becoming a homeowner.