How to Buy a Foreclosure
The advantage in purchasing a foreclosed property is that it will likely sell for less than the fair market
value of a similar home. Here are some suggestions for anyone interested in buying a foreclosure:
- Use a Realtor® who has experience in dealing with these types of sales. They can save you money, time and
provide you with valuable information.
- Determine comparable sales prices by looking at sales of similar homes in the same neighborhood in the last
three months. Also check the pending and active listings that are similar.
- An inspection of the property by a qualified and licensed home
inspector or contractor is strongly suggested. Whether this home has been vacant for a few weeks or many
months, problems may exist that could prove extremely costly.
- Ask if there are any other offers on the property. In a multiple offer situation, you will have to consider
that there may be cash offers to compete against.
- Provide the seller with a pre-approval letter with your offer if you are financing or proof of funds if
this is a cash sale. Make sure you allow a generous cushion for repairs, if necessary in your offer.
- Reduce the time for closing as the bank would like to remove this property from its' books before the end
of the month, if possible.
- Be prepared if your offer exceeds the appraised value. The bank should be willing to renegotiate as this
problem would reoccur with another buyer.
If you are patient, persistent, and working with an experienced Realtor®, you will find buying a foreclosure can
be a good value and a relatively smooth transaction.
For more information about foreclosures in our area click here.
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