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Common Issues with Selling a Foreclosed Property
Monday, May 25, 2015
"Foreclosure" is a word that leaves a bitter taste in many people's mouths, yet it is a term that some eventually must come to terms with. Once the property is foreclosed and bank-owned, selling it generally lies in the hands of the bank, and, therefore, some common problems begin to manifest.Less Negotiation Room
In the home-selling and buying processes, negotiating is a standard part of the deal. However, with a foreclosed home, the bank is already short on money for it. Participating in negotiations and lowering the price even more would put them in an unfavorable financial spot, so buyers do not have as much power with these homes.Vacant and Abandoned Properties
Sometimes, foreclosures appear on the market and sell quickly, yet in many cases, the house has sat untouched and unoccupied for months or even years. As a result, the house may be covered in filth, or it might have problems with bugs or rodents. The property quickly becomes undesirable in this condition, especially for individuals who wish to purchase a home that is move-in ready.Failure to Pass Inspection
Coupled with these sanitation issues come problems with passing the inspection. A house needs to pass inspection in order for a successful transaction to manifest. Foreclosed homes may have issues with structural integrity, or they might not match with health codes. Of course, these problems can be resolved, but someone must be willing to put in the money to fix them.Lack of Updates
The problems with the house might not cause it to fail the inspection, but they can be a problem for potential buyers. Many buyers want to purchase a house with all fully-updated features so that they do not need to do any more work once they move in. Yet if the house has sat unoccupied for a long period of time, the structures and appliances inside of it are likely outdated.Past Owners Who Refuse to Leave
In certain cases, the people who once owned the home will refuse to leave because they say, "I don't want to sell my house
." Individuals who are dealing with these types of circumstances should really think twice before buying the house. Once they own the house, it can become their entire and sole responsibility to evict the old homeowners. Consulting with a real estate attorney before planning to purchase this type of house is necessary.
If you're saying "I want to sell my house
," but need help doing so, we can assist.