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The Best Way in Buying Houses in Foreclosure

Posted Tuesday, July 14, 2015

Foreclosures are changing the way that we buy houses. Homes that are under foreclosure can account for up to a quarter of all residential property sales in some months, and there are many deals to be had for savvy shoppers. However, there are a number of things that people should understand in order to get the best deals when purchasing foreclosures.

Check the Listings

Locating foreclosure real estate listings is relatively easy, and there is no need to search through legal filings or go to the courthouse to bid on properties these days. All people need to do is perform a search for sites that list foreclosure properties. There are a number of them online that give people access to listings from all over the country.

Get the Right Agent

Buying a foreclosure is a bit different than other types of real estate transactions, and it is best to find a specialized agent when we buy houses. These individuals will guide people through the process and alert buyers to risks and challenges. In addition, they will assist in things like researching property titles and helping people find reputable contractors and inspectors.

Know the Options

While it is always possible to buy a property from an owner before it is foreclosed on or put in bids at an auction, most people who purchase foreclosures for the first time choose to buy properties from the bank. This is the safest option, and it will give people the chance to go through the home and identify any potential issues before they purchase it. In addition, buyers are able to take out a mortgage on a bank-owned foreclosure, and there is no chance of finding outstanding liens on the property as banks are required to take care of them.

Budget for Renovations and Repairs

Buyers should always keep in mind that the reason they are able to get deals on foreclosures is that they often need repairs and renovations. With this, it is important to take these costs into consideration when figuring out their budget. Adding an additional 10 percent to the purchase price is generally a good estimate of what people can expect to spent, but this can vary widely.

Enter an Appropriate Bid

Banks are usually not in a hurry to get rid of foreclosed homes, and buyers should not expect them to sell properties for significantly less than what they are worth. People should do their homework before bidding on a property and make sure that the amount offered is appropriate.