Buyers may be swayed by the big bargain prices that foreclosures often offer. But before they jump in, some housing experts say they need to be warned that it may not be as big of bargain as they believe.
“Brokers who specialize in the foreclosure market say there are good deals to be had, but they advise buyers to look beyond an alluring list price and do the research to avoid getting into trouble,” an article in the Buffalo News notes.
For example, often times, foreclosed homes are sold “as-is,” but if the homes have been left vacant for awhile it may have lots of maintenance and damage issues that might not make it such a great bargain after all. Housing experts recommend getting a home inspector to look at the property before submitting an offer—regardless of it being sold in “as-is” condition—so that buyers can know what they’re getting into and the potential price tag for any needed repairs. Vacant and improperly maintained homes may have problems like frozen pipes and water damage.
Real estate professionals also advise buyers of foreclosures to take into account any liens or judgments on the property, which they may inherit if they purchase the home. Ensure the property title is clean by working with a foreclosure attorney, Pat Flowers of RealtyUSA suggests.
Also, buyers need to be aware that closing costs may be more expensive when buying a foreclosed property since banks will not absorb some of the costs, Todd Vanderlip of Realty Edge told the Buffalo News.
Source:National Association of Realtors
Dy Associates is an Oakland Real Estate company specializing in commercial, home and investment property in the Oakland and East Bay Area. We provide real estate services including buyer agent, seller agent, short sales, commercial and investment acquisitions, loan facilitation, hard money lending, financing assistance property management. Articles are provided as information only. We do not provide legal or general investment advice.