In especially hot housing markets like Denver, many buyers are considering non-traditional sales to secure a home. Buying a foreclosure property can be a great way to break into real estate for first time buyers and beginning investors alike. If you’re considering a foreclosure property as a home or investment, check out common mistakes to avoid below!
Mistake #1 – thinking all foreclosed homes are bargains
Remember that the party selling the property (lender, government agency, etc.) wants to clear its inventory. The home’s condition is not their concern. Be prepared to do your homework and hire a pro to help navigate through the process.
Mistake #2 – over-bidding
Foreclosed-home buyers must know area home values, condition of nearby properties, neighborhood trends, street noise, airplane traffic, zoning and other issues that affect the property’s value. Sometimes bank-owned REO properties are priced below market value to attract multiple bids and drive up the sales price.
Mistake #3 – skipping an inspection
Only a licensed home inspector can identify problems from electrical wiring or plumbing to radon or pest infestation to serious structural or system problems. If you don’t have inspections conducted on a property prior to making a purchase offer, you’ll want to include an inspection contingency in your contract.
Ready to start checking out foreclosure properties in the Denver metro area? Contact Metrowest today – our experienced professionals would love to help you get started