If you’re in the market for buying a new home, you may have noticed that many homes listed as foreclosures are often much less expensive than other homes in your area. While saving some money on the asking price of a home sounds great, there are a few things you should be aware of or take care of before you get set on purchasing a home that’s gone through a foreclosure. To help this process go as smoothly as possible, here are three tips for buying a foreclosed home.
Get Your Own Inspection
When you’re going to purchase a home, it’s always a good idea to have an inspection done. However, this step is even more important when you’re going to purchase a foreclosure. Jeanne Baron, a contributor to This Old House, shares that while banks usually require an inspection before they’ll lend you the money for the home, you should also make sure you get your own private company to conduct an inspection. Tenants that were forced to leave the home will sometimes try to retaliate by causing damage to the home before they leave. This should be noticed during the inspection so you know exactly what you’re getting when you buy the home.
Work With A Broker and The Lender
Buying a foreclosure is different than the standard home buying process. Holden Lewis, a contributor to Bankrate, shares that the best way to have a successful outcome when buying a foreclosure is to work both with a broker and with the lender. Banks usually work with specific brokers for foreclosures, giving you a great in if you can find the broker for the home you want to buy. This could make it so there’s a lot less competition for the home you want to buy if the broker you’re working with can give you information regarding the home before it even goes to market. Also, by meeting with the lender, you can ensure you’re able to get the financing you need to make the purchase at the right time in the home-buying process for foreclosures.
Expect An Unsteady Timeline
Foreclosures can be very touch-and-go during the buying process. HomeFinder.com shares that these kinds of deals can fall through at any time and for any reason, so be aware of this before you get too invested. Because of this, purchasing a foreclosure might not be the best idea if you have a strict timeline you’re trying to adhere to. Things can be stalled out or move quickly during the process, which can make for a very unsteady timeline. So unless you’re willing to be flexible with your timeline for purchasing the home and moving in or renovating it, you may want to rethink the idea of going with a foreclosure.
If you’re considering buying a foreclosure in the future, use the tips mentioned above to do so seamlessly.