5 Tips to Buying Foreclosed Homes

5 Tips to Buying Foreclosed Homes

If you are in the market for a new home, you want to make sure that you consider all of your options.

You want to make sure that you are going to purchase the home of your dreams, but that you do so at a price that you can budget for and afford.

Reasons homeowners get foreclosed on:

  • Large debt and other bills that have overwhelmed the homeowner
  • Divorce and other legal issues
  • Loss of income, fired from job, or unemployed
  • Medical conditions not allowing borrower to earn income
  • Unable to pay HOA dues

5 points to keep in mind:

  • Foreclosures are sold as-is
  • Know your budget
  • Know the neighborhood, and what comparable homes are going for.
  • A loan approval letter should be your first step
  • Find a real estate agent that is on your side.

Buying The Perfect Home

As time goes on, more and more families lose their homes to foreclosure. Many new home buyers are beginning to realize that foreclosed homes may be the perfect homes for their purchase.

Home foreclosures often feature some of the best homes, in the nicest neighborhoods, for an incredibly low price.

If you are looking into home foreclosures, there are a few tips that you need to use during the research and purchase process.

Tips for Home Buyers

These tips will help you to make sure that the foreclosed home that you are looking into is the right home for you.

1. Talk to The Seller

If you want to know more about the home that you are looking into, go directly to the seller. The seller will be able to talk to you about most of the information that you need to make a decision about the status of the home.

They will be able to tell you about known issues in the home, and may be able to tell you more about the neighborhood that the home is in.

2. Get a History of The Home

You should talk to local realtors for information on the history of the home. Try to find out about previous owners, and previous issues and repairs that the home may have gone through.

3. Compare the Price vs. The Worth of The Home

When you purchase a foreclosed home, you may be paying less for a home that is worth more. Talk to realtors about the worth of the home to understand whether or not you are getting a good deal on the home.

4. Talk to Local Realtors for Comps

The easiest way to make sure that you understand the value of the home is to look at the comps in the area. Ask a realtor to comp the area for you, as these comparisons give you a better insight into the value of the home in todays market.

5. Set Your Budget for Renovations

If you are looking into a foreclosed home, you may need to need to set a budget for renovations. While some foreclosures are in perfect condition, others need some repairs before they are ready to be moved in to.

If you want to find the right home in a sea of home foreclosures, you simply need to do your research. Talk to the seller of the home, and to local realtors who know the area well.

Know your own budget, and know the cost of the home. When you put this information together, you will be able to fully understand what you have to both lose and gain through the purchase of a foreclosed home.

This process will help you to find the right home for you and your family.