Buying a foreclosure can be a great way to save money on a new home, but you need to exercise a certain amount of caution. Although foreclosure discounts can significantly lower the cost of a home, you can also end up in over your head financially if you’re not careful.
Avoid making these common mistakes when buying a foreclosure:
•Not hiring a realtor: Foreclosure transactions are much more complicated than the traditional home buying process. You’ll need the help of a professional agent who specializes in foreclosed homes.
•Not checking on state and local laws: To avoid legal issues, it’s important to know the laws on buying foreclosures. The contract has to adhere to these laws or it could be invalid.
•Not thinking long-term: Make sure the foreclosed home you buy will be a good investment ten years down the road. If you don’t think that far ahead, you could be investing in property that will decline in value.
•Not saving for repairs: Set aside at least 10 percent of the home’s cost for repairs. Don’t just look at the cost of the home when determining your budget. Repairs are commonly needed in foreclosed homes, especially ones that have been vacant for awhile.
•Not narrowing down your search: It’s easy to find foreclosed properties in any part of the country, but it’s best to focus on a specific area to avoid being overwhelmed. Work with a real estate agent in that area to find a home that suits your needs.
•Expecting significant foreclosure discounts: Don’t assume that the bank will take a big chunk off the price of a foreclosed home. You’ll still need to negotiate for that.
Need help buying a foreclosed home? Contact me and I will show you the way home. John Cantero (918) 313-0408
Posted on August 13, 2014 at 1:56 pm by John Cantero (918) 313-0408