If you’re looking to find a great deal on a home (and who isn’t?), you’ve probably considered buying a foreclosure, as a primary residence or as an investment property. While you might get a good price, purchasing a foreclosure home doesn’t come without some extra work.
Here’s a few hints to get you started:
- Foreclosed homes are also called real estate owned (REO) property. An REO property is owned by a bank or lender as a result of the previous owner defaulting on the loan. Other names for these properties would be a foreclosure property or a bank-owned property.
- Finding a real estate agent who works directly with banks that own foreclosed homes will provide you the best access to area houses. A site like ForeclosuresUS.com will help home buyers narrow down their search. Simple searches for ‘REO properties’ or ‘foreclosures’ can also help refine the search.
- Distressed properties are for sale during many stages of the foreclosure process. You might find homes in any of these stages.
- Pre-foreclosure – the homeowner still has control of the property
- Auction sale – you may be bidding against others, including investors
- Real estate-owned (REO) – a lender-owned property
- Government-owned – potentially a slower process with more paperwork
- Since the bank has not maintained the home, there will not likely be any record of repairs or maintenance that would assess the true property condition. The home comes with little room for negotiations and improvements. Similar to buying something ‘as-is’ the buyer will be responsible for repairs and updates.
Ultimately, the goal of combing through foreclosure listings is not to find a house – it’s to find an agent. Banks usually have a few agents who handle their foreclosure properties and these agents will have the insight into newly available homes. The economy will determine how many bank-owned homes you’ll find in your area. During a recession, as many as one-third of homes are sold in foreclosure but in a growing economy you might not find anything worth investing in.
Need help combing through foreclosures in your area? Contact us and one of our real estate agents can help you refine your search.
Looking for the best deal on a new home? Purchasing a foreclosure lets you save a significant amount of money on a home that you might not be able to afford otherwise.
United Real Estate makes it easy to search for new foreclosures in your city, if you live in Pennsylvania, New Jersey, Delaware or Maryland. Focusing on newer listings makes it less likely that you’ll run into the problem of finding foreclosed homes that have been damaged, vandalized or left vacant for a long period of time. This means that your chances of finding a foreclosure that’s in good condition and doesn’t require a lot of repairs or renovations are much higher.
You can search by county or city, address or ZIP code, school district, neighborhood and county or township. Our search feature also lets you narrow down your options by selecting a price range, number of beds, number of baths, minimum square footage, home style, property type and amenities. Keep in mind that buying a foreclosure is more complicated than a traditional home purchase, so consider having an experienced agent help you out.
Need help buying a foreclosure? Contact United Real Estate, and follow us on Facebook.
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.
Ready to begin looking for foreclosed homes for sale? Contact United Real Estate today, and visit our Facebook page.
If you’re looking at saving big money on a house, buying a foreclosed home is an option to consider. The number of foreclosures is on the rise in several states but it’s important to consider the pros and cons before deciding to buy one.
What are the advantages of buying a foreclosure?
- Getting a better deal if the home is in pre-foreclosure, since the homeowner will want to sell it as soon as possible.
- Making an affordable and smart investment by buying a foreclosed home that’s surrounded by homes with a high resale value.
- The foreclosed home will have a clear title without back taxes or liens if it’s a real estate owned property.
The disadvantages of buying a foreclosure include:
- The home might need extensive repairs, especially if it’s been empty.
- You won’t have a lot of time to gather money for buying the home.
- You’ll have to fill out additional paperwork if the home is real estate owned.
The states with an increasing number of foreclosures include Maryland, Nevada, Connecticut, New Jersey, Pennsylvania and New York.
Need help finding foreclosed properties for sale in your area? Contact United Real Estate, and stop by our Facebook page for buying tips.
While foreclosure rates have dropped in the past few years, there are still plenty of foreclosed homes around that are for sale. You can save a significant amount of money on a new home bybuying a foreclosure.
When you’re looking into foreclosed homes, ask the following questions. This will help ensure that you get your money’s worth:
- How long has it been empty? You can expect a greater amount of damage if the house has been empty for a long time.
- What condition is the house in? Hire an inspector to give the house a thorough walkthrough, and make note of anything that needs to be repaired or replaced.
- How much will repairs or renovations cost? Factor this cost into your budget when deciding whether or not to buy a foreclosed home.
- What’s the neighborhood like? Avoid buying a home in an area with a high crime rate or several other foreclosed homes, since this affects its property value.
- Has the landscaping affected the house? Dead tree branches, roots and untrimmed shrubs can damage the house and the pavement around it.
Ready to get started on buying a foreclosure? Visit United Real Estate to get started, and check out our Facebook page for more home-buying tips.