Many homebuyers these days look to bank owned foreclosure properties as a means of obtaining a home for a low price. Perhaps you are someone thinking of buying a house in this way and with a good amount of foreclosure properties available, it might seem like the best option if you have a tight budget. While its true that this kind of property can be a good buy, there is also a lot to consider. What are some things to think about?
Well, one important step to take before signing a contract is to have the property inspected by a certified home inspector. You might find, however, that the realtor will try to convince you that this is not necessary, why? They may reason that because you will be buying the property “as is” that it is not worth spending the money to have it inspected. This is not sound reasoning though, for example, what if there are some major concerns with the home structurally? Or what if it will require thousands more dollars to repair issues that would only show up after a thorough inspection? Its important to remember that the very nature of a bank owned foreclosure means that the owner could not pay their mortgage, this means that it is quite unlikely they spent money to maintain the property.
Another issue you may encounter with a foreclosure is that the homeowner stripped the house bare of anything worth having, sometimes a home will also be vandalized or contain tons of rubbish and junk. If you buy the property, then you will be responsible for all of this.
So, before you buy a foreclosure property, think about the ways you can minimize those unwanted surprises that sometimes accompany this type of sale. Have a home inspection performed on it to make sure you know exactly what you are in for should you decide to buy. You will probably end up saving thousands.