What Everyone Should Know About Buying a Foreclosure (part 1)
First, although some banks list their foreclosures at lower prices that is not always the case. You should always talk to your real estate agent to find out what home prices are in the neighborhood. Better yet, ask your agent to do a CMA (competitive market analysis) on the home. I do these for all my buyers before they purchase their home, whether it is a short sale, foreclosure, or purchase from a seller.
The next thing to consider is condition. Quite frankly, there may be major damage that needs to be repaired. Keep in mind, most banks will only allow you an inspection for information. They are offering the property “as-is” and since they have not lived in the property, they don’t know what may be wrong with it. So while you may think you just got the deal of the century, you could have bought a property with major structural damage that will cost you in the long run.
Another thing you may want to think about is time. Some banks will get your offer and will not counter it or accept it, they will just wait and see if another offer comes in that is better. They also could reject it outright. So while, in a transaction with a seller you may get a counter a bank doesn’t always counter.
The banks work on their schedule, so it may take weeks or even months to get an offer approved. Ironically, immediately after the bank approves the offer they may want closing within 30 days!
So you need to put all the pieces in place to make that happen, because banks will sometimes charge a daily fee when you go past their closing date!
Wait there is more to consider in part 2 of What Everyone Should Know About Buying a Foreclosure.
About Sean Casey…
I'm a full time Realtor®. I enjoy reading, listening to music and watching Philadelphia sports. I love animals, especially dogs and my wife rocks! Please connect with me on Google+, Twitter, Facebook, or LinkedIn. Read More About Me
Sean Casey REALTOR® Patterson-Schwartz Real Estate