Foreclosures are an amazing option for some buyers, but before you choose to buy one, make sure that you read through this article to see some of the unexpected elements you might run into during the process. Then be sure to watch the video for even more information!
- They’re sometimes in bad shape. A foreclosure really just means that the person who lived there could not make their mortgage payments, and sometimes that results in them either stripping the home of particular amenities or leaving it not in great shape. Because foreclosure homes are sold “as is” by the bank, that means that you may have to do a lot of legwork to turn the home into the home that you’re envisioning that you’re buying. However, the good point of that is that you often have to pay much less for the home because the bank knows that you’re taking a risk, and they’re just trying to get their money back.
- You’ll be working with the bank.You’re working with a bank, not a person, so the process can feel very different than going through a traditional home buying process. There isn’t a ton of negotiating or the attempt to make you as a buyer seem more desirable with a sweet, personal note like there might be in a traditional negotiation. Instead, you will have to rely primarily on a real estate agent you really trust who knows the ins and outs of dealing with foreclosures.
- You’ll sign different kinds of contracts. There will be a different kind of contract than you would see in a traditional purchase because it is with a bank that is extremely protective of its own interests, and it will put much more of a burden on you as a buyer than you would normally have in a traditional purchase. That’s not necessarily a bad thing, but it does mean that you should work with someone who knows what they’re doing when it comes to some of the more abstract aspects of foreclosure deals.
- You won’t have as much access to information.You may not know how many competitors you’re up against. Usually when you’re going through a traditional home purchase, your agent can reach out to see if there has been a lot of interest in a home, but with a foreclosure, there is more secrecy because you’re working with a bank, so you can’t just reach out and ask.
- Basic Maintenance has probably not been kept up. Because the previous owner has not always been living in the home, basic maintenance has often been overlooked, so small issues like a minor water leak can often turn into a bigger problem, and there is often next to no yard keep up. Additionally, there is often no electricity available in the house for the showing, so you may not be able to see everything.
These tips have been brought to you by Maria Sims Group, a company dedicated to making sure that you’re in the best home for you. If you have any questions about our company or would like to ask about a personalized list of homes that would fit your needs, please reach out. Our homepage can be found at mariasimsgroup.com or you can call us at 404-805-0673.