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3 Things Homebuyers Should Know About Purchasing a Foreclosure

There are several advantages of purchasing a foreclosure in 2019. Most notably, they present an opportunity to score an excellent deal on real estate. After searching, you may be surprised at how many forclosure properties there are in your desired area. If you are thinking about purchasing a foreclosure, here are a few things that you should know. 

Most foreclosures are sold “AS IS”

If you are going to go the foreclosure route, be ready to face “AS IS” prices. In many scenarios, you will not be able to negotiate prices when purchasing a foreclosure. You may need to pull out a calculator and crunch some numbers when trying to figure how much you will need to spend on any repairs/replacements. You may be surprised how quickly these repairs add up and blow your housing budget. 

Buying a foreclosure is a lengthy process

It often takes a while to purchase a foreclosure. Compared to the average real estate transaction, a bank has more steps to take with a foreclosure transaction. This includes working through all legal matters. For instance, sometimes there will be liens on a property. It can take quite a while for a bank to complete and approve all papers. Do not buy a foreclosure and expect to move into it right away. In some cases, it can take several months to finalize the transaction. 

Most foreclosure properties are vacant 

The majority of foreclosures are empty. Since many foreclosures have been vacant for extended periods, it is not uncommon to find electric, plumbing, and cosmetic issues in these homes. When there is no upkeep, no water running through the pipes, or temperature regulation of any kind, there will be problems. When purchasing a foreclosure, don’t expect the bank to make any repairs for you. 

Matt Steinmuller (26 Posts)


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