One way for homebuyers to find a great deal on a property is by purchasing a foreclosed home. This is a home that has been repossessed by the bank or a lender after the owner failed to make mortgage payments. According to real estate data curator ATTOM, although still below pandemic levels, the number of foreclosed homes has increased from February 2022 to February 2023, so now is a great time to consider this option.
However, buying a foreclosure can be a complex process and sometimes more difficult than buying a traditional listing. To help you secure a great deal in today’s market, consider these three important points when searching for and buying a foreclosure:
1. Hire an experienced real estate agent. By partnering with an experienced agent who specializes in foreclosures, you can gain access to listings that may not be available to the general public. They can also provide insight into the local market, help you understand the risks and benefits of purchasing a foreclosure, and walk you through the legal requirements and paperwork involved. Plus, they can negotiate on your behalf and help you secure the best possible deal.
2. Research and identify foreclosed homes. This may involve looking at properties in different neighborhoods and considering homes in different stages of foreclosure. Your agent will be your best resource for finding foreclosed homes, but you may want to investigate yourself. Most of the time, these listings can be found on real estate or government websites. You can also check with local banks and lenders that may have foreclosed properties they are trying to sell.
3. Inspect the home thoroughly. Foreclosed homes are usually sold as-is, which means that the seller is not responsible for any repairs or issues with the property. To avoid any unpleasant surprises, have a professional home inspector take a look at the property before you make an offer. If the inspector finds any issues, you can use this information to negotiate a lower price or to decide whether or not to move forward with the purchase.
With careful planning and research, buyers can find a great deal on a foreclosed property and potentially turn it into a profitable investment. If you need any help buying one, call or email me anytime. I’d be happy to help you!