Buying a foreclosed home isn’t exactly the typical purchase. However, that doesn’t mean that it doesn’t come along with a distinct number of advantages. From a lower purchasing price to a quicker sale, a foreclosed home can be a great option for potential buyers.
However, before you decide to purchase a foreclosed home, you’ll want to keep the followings things in mind. Whether you are considering buying a foreclosed home in Wilmington or even somewhere else across the country, these tips can apply.
Understand What You Can Afford
This tip applies to all potential homebuyers, whether considering purchasing a foreclosed home or not, it is imperative to have a clear understanding of what you can afford. Even if a house seems to be a stellar deal, it still may not be worth making an offer for if it is clearly out of the budget. It is in your best interest to determine the range of what you’re willing and able to spend. Not only will this help make the entire buying process easier, but it will also ensure that you end up with a home that you love and can afford.
Seek the Guide of a Real Estate Professional
Next, you’ll want to seek the guidance of a real estate professional, especially if you’re considering purchasing a foreclosed home. This is one time that you do not want to go it alone. A real estate agent can help you navigate this process. Buying a foreclosed home doesn’t follow the “standard” purchasing process, thus, it can be extremely beneficial to have someone on your side that knows how to navigate this often complex process. A real estate agent who specializes in REO (real estate owned) properties can be a huge asset. Not only can they help you determine if it’s a good deal, but they can help you work out all the logistics of the deal.
Have the Property Inspected Before Purchasing
While this is an important step before any major purchase, it is particularly true if you are dealing with a property that has been foreclosed upon. Even if things looks pristine from the outside, you won’t want to skip out on this all too important step. Often, banks are unable to verify the condition of the home. Meaning, if you purchase without an inspection, you could end up with a hefty number of potentially expensive repairs. The majority of REO homes are sold “as is”, meaning you’ll be expected to pay out of pocket for any repairs necessary. This doesn’t have to be a deal breaker. Just be prepared and know what to expect.
Obtain the Most Up-to-Date Title Information
In addition to having an inspection performed, you’ll also want to obtain the most up-to-date title information on the house. A title will let you know if there are any outstanding debts tied to the home as well as verify the deed to the home. Think of obtaining the title as another security check, a safeguard against unexpected surprises. Due to the unique situation of purchasing a foreclosed home, an up-to-date title is crucial information to have. Be cautious of purchasing a foreclosed home, no matter how sweet the deal, until you have secured the title information.
Sure, maybe purchasing a foreclosed home isn’t the most typical transaction, but with a little help and the right guidance you can be on your way to making one of the best purchases of your life.