Five Things to Consider when Buying a Foreclosure
Buying a foreclosure isn’t the same as buying any other type of home, and it comes with its own challenges and hurdles you might encounter during the process. With that said, however, it doesn’t have to be as complicated as it might sound, and with the right information to back you up, you should be able to work through the process successfully. Check out the list of tips below to give you a few things to consider when you’re thinking about buying a foreclosure, whether this the first time you’ll be going this route or you’ve done it before.
- You will not be able to negotiate: Most of the time, the bank is the one selling a foreclosed home. Because the home is owned by the bank and they want to make back what they can as quickly as possible on it, they aren’t going to be interested in negotiating with you on the price. Every now and then, you may be able to get a slight reduction in the price, especially if the home has been on the market for a long time. However, for the most part, you should expect to pay the asking price for a foreclosed home.
- You’ll be buying your home as-is: For many of the same reasons why the bank is going to be uninterested in haggling with you on the price of the home, they’re also not going to want to make any repairs to it before you purchase it. They simply want to sell it as-is, which means you’ll need to be okay with the condition of the home before you ever purchase it. That’s not to say you should skip having a home inspection done before you finalize everything, but keep in mind that this inspection is mostly going to be for your own benefit and you won’t be able to request any changes based on its findings.
- You’ll need a pre approval letter from your lender before you can buy: Whether you’re borrowing from your bank or from another lender, the bank selling the foreclosure is going to want to see proof that you’ve been approved for a loan before you can finalize the buying process. Basically, they don’t want to end up selling the home to someone who can’t afford it, and they also don’t want to waste time trying to sell it only to find out, in the end, that you can’t buy it for one reason or another.
- You probably want to work with an agent who understands foreclosures: Unless you’ve already been through the process of buying a foreclosure in the past and feel pretty confident about it, you need to work with a real estate agent who knows what they’re doing. An agent with experience in foreclosures will know all about the ins and outs of the process and will be able to help you streamline it as effectively as possible. You’ll be much more likely to be successful with your purchase when you go through an experienced agent.
The housing market is hot this year and there may not be many foreclosed homes on the market. We are local area experts in Scottsdale and Paradise Valley are. We can find a home that meets your need and budget.
