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Should I Buy A Foreclosured Property?

14 Mar

Green MortgageBuying a foreclosed property in Sacramento and the surrounding area can be different than buying other types of real estate. And if you are a first time home buyer, this may not be a road you want to  travel down.

In many cases you will be able to get a fantastic deal on a home, but you will need to go through quite a bit of work and negotiation. Here are some of the basics facts from a local agent with a ton of experience in the area of Foreclosed property – click here for video

Here are four tips to help you navigate the foreclosure buying process:

Find the right real estate agent

The first thing to keep in mind is that your real estate broker will deal directly with the bank that owns the foreclosed property.

The bank has the final say in whether they’ll accept your bid – so you want an agent who has developed a good relationship with them.

Know that cheap doesn’t mean good value

Sometimes the tiny price tag on a foreclosed property can be very tempting, but make sure you are asking questions about the value and the potential expenses of the house.

Will it require extensive repairs?

Will you be able to find a tenant?

Does the property have potential for appreciation over time?

Will you be able to get a loan on this property if it is not in good condition? (wink wink, talk to a good lender!)

Perform a house inspection

If the previous owners were foreclosed on because they couldn’t make their mortgage payments, it’s possible they didn’t have enough money to give the home the proper maintenance it needed.

Make sure you have the property inspected by a professional to spot any problems.

Take extra care if the house has been empty for a while, as there could be problems with plumbing, insects or mold.

Look for intentional damage

Keep in mind that many owners were forced out of their property by the bank, so they might have removed as many appliances, light fixtures and other items as they could which usually means the house is stripped bare.

The previous owners might have been angry and felt justified in damaging the property.

Make sure to do a thorough inspection to find out what appliances you’ll need to buy and messes you’ll need to clean up.

If you are considering buying a home in foreclosure, you could possibly get a great deal on a house with a lot of potential.

Make sure you follow these tips and contact your licensed and trusted real estate professional for more information about buying a foreclosed property.

If you would like to get pre-qualified for a new home purchase, or a refinance, don’t hesitate to call me!

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Posted by on March 14, 2013 in Real Estate Tips

 

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