Buying a foreclosure can help you save big money on a house, but it’s not always a quick or easy process. There are certain things you should be aware of before you decide whether or not to do it.
Use these tips on purchasing a foreclosure to help you determine if it’s worth the extra effort:
- Don’t expect to do much negotiating to bring down the price. If you buy the home, you’ll be responsible for fixing it up at your own expenditure.
- Get a pre-approval letter for a mortgage from a reputable lender. Don’t assume that the bank that owns the house will handle your financing.
- Do your research and look into what other comparable properties have sold for. This helps you come up with a better offer that’s more likely to be accepted.
- Gather a list of reliable repair companies, since most foreclosures will require some fixing up.
- Bid at the highest price you’re willing to go, then work your way down from there, if possible. You can start out lower if the home has been vacant for awhile.