The Dos and Don'ts of Buying a Foreclosure
- Go with the pros: When looking to buy a foreclosure, you are definitely going to need guidance. There are many laws and regulations involved when buying a foreclosure that vary from state to state. At Century 21 North East we have professionals with experience buying and selling these types of properties, so you’ll definitely want someone to help you along the way.
- Know what you want: Before you jump into house hunting, you want to make sure you know what you want. Keep your price point in mind and make sure you are qualified to purchase a property within this range. You will also want to know the size of home you’re looking for and where you want to be located. If you don’t narrow your search, you may end up overwhelmed with locations and listings. Be specific and be educated.
- Think long-term: When you buy a foreclosure, you need to know what the property may cost down the line. Whether you’re looking for a fixer upper or a quick resell, be aware that the property value can decline. Before you buy make sure you are ready for a long term commitment if it comes down to it.
- Don’t rule anything out: When shopping for a foreclosure, you may realize you don’t actually want all the hassle and repairs that come along with it. Even if you solely intend to buy a foreclosure, you may want to consider a traditional listing with the whole package before you commit. Make sure to keep an open mind and get the home you really want.
- Don’t skip inspection: For only $300-$500 a home inspector can come and report on all structural, mechanical and major aspects of the home you’re looking to buy. This may give you a bigger and better picture of what you are in for when purchasing, such as repairs and clean up. Make sure to ask questions and address all the necessary issues.
- Don’t expect a huge profit: If you go into buying a foreclosure looking to make out big on a quick resell, think again. A lot of unmaintained homes, even with little repairs, tend to lose value quickly and sometimes you can get stuck paying penalties for a neglected property. Although you may repair and resell quickly, you may not always make out big with a foreclosure.
Buying a foreclosure can turn out to be very rewarding and successful but can also be a headache and stressful. As long as you do your research and keep these Dos and Don’ts in the back of your mind, the right property will come along and you will be ready!