Avoiding Foreclosure Pitfalls
While buying a foreclosed home can be a profitable and money saving investment, there are many blunders that newbies may fall victim to. Take heed to the warnings below…
1. Keep an Open Mind
It’s great to have a money saving plan for your real estate investment, but don’t limit yourself exclusively to foreclosed properties. There are certainly competitively priced houses on the foreclosure lists, but traditional listings may also turn up that could be exactly what you are looking for.
Keep in mind that foreclosed properties often come with baggage such as tax liens, repairs, and title issues. A traditional seller is usually easier to work with to resolve any issues contractually.
2. Hire an Expert
Our team is well versed and ready to tackle the complexities of the foreclosure market. You’re going to need the guidance of professionals to navigate through pre-foreclosures, foreclosures, short sales, and bank owned properties in your local market. This will most likely be the biggest investment of your life, let us help you through it.
3. Preparation is Key
Prepare by knowing your spending limits, what you want in a home, and where you want to buy. If you put the cart before the horse, you might just lose that perfect property because some other buyer was well prepared.
4. Get an Inspection!
The house may look good, and might be a great price, but there could be major problems that your untrained eye might miss. If an inspection reveals a major defect you may get the bank to repair the problem, or lower the purchase price.
Be sure to attend the inspection, take notes, and ask lots of questions. You should be completely aware of the condition of the property you are purchasing.
5. Think About the Future
A property’s value is determined by the market, and will fluctuate based on the needs and wants of buyers. Talk to us about your plans for the property. Are you purchasing the property to flip, or moving in to start a family? Let us show you the trends we see in the market to ensure they align with your future real estate goals.