Are you interested in buying a foreclosure? If so, you are not alone. A recent study from Realtor.com found increasing interest in foreclosure buying among those looking for a home to call their own. Foreclosures used to primarily have appeal for investors but these days more and more home buyers are getting ready to enter the market. But while the deals are prevalent, buying a foreclosure can often be more complicated than a traditional sale.
Competition May Be Fierce: The increased attention to foreclosures has resulted in more activity on these distressed properties. Many Realtors and buyers from around the country have reported multiple offers, and some foreclosures are not on the market for long. The upside is that the bank is not emotionally attached to the home. ?You cannot hurt their feelings with a low offer, that is a risk on properties with owners that have a vested interest, plus sweat, memories, and attachment,? says Darlene Humphreys, a Realtor with Coldwell Banker Holman Premier Realty in Klamath Falls, Oregon.
Repairs Can Be Costly: Repairs can be one of the biggest expenses in foreclosed homes. The homes are bank-owned and may not have been lived in for a while. They are often sold as is, meaning that the new owner will be responsible for any repairs necessary to make the home liveable again. A thorough home inspection will also help you assess whether or not the home?s price is really a fair deal. ?Make your offer out as if you will be making the repairs yourself,? cautions Adam Aguilar of Reliantra Real Estate in Toluca Lake, California.
It Can Be Challenging To Get A Loan: Banks are sometimes cautious about providing loans on foreclosed homes. Depending on the condition of the home you may want to get detailed estimates of what the repairs will cost. This can be especially valuable if you will be looking for loans to help with the expenses. ?I always bring a licensed contractor with me to look at properties that are of serious interest to my clients,? says Denise Shur of 1:1 Realty in San Jose, California. ?A contract will give you the best ball-park figure for costs to repair the home. This also gives you an opportunity to get your contractor on the approved list for the 203k loans or find out your contractor is already an approved vendor.?
?Start with a Realtor who is familiar with these types of loans and get a market analysis of the area around the home so you have an idea of values in the area,? advises Beverly Houlier, a Realtor with Hilltop Chateau Realty in San Diego, California.
Find A Foreclosure Expert: Many Realtors have chosen to specialize in distressed properties including both short sales and foreclosures. ?I would recommend that you find an agent to represent you as a buyer, one who has experience dealing with such sales. agents with earned designation such as the NAR designation ?SFR? (Short Sale & Foreclosure Resource) are good starts,? recommends Doug Parker,a Realtor with Prudential Calhoon Company Realtors in Hilliard, Ohio.
Related posts:
- Looking Beyond The Distressed Sale For A Deal In Today?s Real Estate Market
- Do I Need A Buyer?s Agent If I Am Buying A Foreclosure?
- Survey Says: Most First Time Buyers Interested in Distressed Properties (DATA)
- Distressed Properties Keep Pressure On Housing Market
- Can You Borrow More Than The Asking Price For Renovations?
About Deidre Woollard
Deidre Woollard is the Community Manager at Realtor.com.
View all articles by Deidre Woollard
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