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5 Major Pointers to Keep in Mind before Buying a Foreclosed Home

Written by Posted On Wednesday, 23 November 2016 07:11

Finding a house of your dreams can be an exciting yet an overwhelming process. You must make sure that the property you’re investing your money in is the best purchase and worth every penny you spend on it. You can take the advice of a real estate agent who will guide you through the entire process.

An individual might also want to consider foreclosures in their area. A foreclosed house is also known as a real estate owned property. A real estate property is owned by the lender on the basis of the previous owner not being able to clear the loan payment. This is sometimes also referred to as bank-owned property.

While house hunting you might want to buy a foreclosed home. However, there are certain tips you must keep in mind before making a foreclosure purchase.

1.    Get a Reliable Lender

Getting preapproval from a reliable lender is essential in buying a foreclosure home. A real estate broker who is in direct linkage with the banks can assure you an approval for the foreclosed homes owned by them.

According to Elaine Zimmerman, a real estate investor should browse reliable websites to filter the foreclosure deals. The website might mention ‘real estate owned’ which would signify that the house has been through a foreclosure and is up for sale.

2.    Get a Broker on Your Side

Make sure to browse through the foreclosure listings to find not only the ideal house but also an agent. Banks usually hire brokers to handle their real estate property transactions. In some cases, the buyers of real estate work directly with the bank’s broker and not the agent. In this way, the commission doesn’t have to be split two ways. However, in some cases, the individuals do not always get a broker’s individual attention since at times there are numerous properties for sale in a particular area.

3.    Preapproval Letter

A preapproval letter from the lender is also a requirement if you do not wish to pay in cash. The letter decides the method and amount of money you can borrow; solely based upon your income and current credit score.

4.    The Sales Pace Decides the Price

There is no concrete price on properties nor are they always decided by the banks. You must look at the current market conditions, compare prices and make a competitive offer accordingly.

5.    No Repair Discounts

It is important to keep in mind that foreclosures are sold in the same condition as they are initially available in; with zero repairs or renovations. This means that you cannot expect for a discount as compensation for repairs. A house listed for $200,000 would be sold as it despite it being high on damages.

See Foreclosures For Sale Destin Florida

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Lisa Snuggs Real Estate Group

I am Lisa Snuggs, the Broker and Owner of "The Lisa Snuggs Real Estate Group" - A successful and ethical group of full-time Realtors on the Emerald Coast. I have lived in Destin since 1997, when my daughter and I moved from Haleiwa, Hawaii on the North Shore of Oahu. I never imagined that I would find any place that could compare to my Island Paradise but the first time I came over the Destin Bridge, I knew I was HOME! I have always loved architecture and the law. Being a Real Estate Broker combines both into a career that I love. I was licensed in February 2007, worked hard, and opened my own brokerage in June 2015 on Main Street in Destin. I have formed a team of driven, hardworking agents and support staff and we have "The Experience That Moves You". Please allow us to serve you.


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