Due to their lower price points, it’s no wonder that purchasing a foreclosure is an appealing option for many would-be home buyers. While not the same as a traditional home sale, buying this type of home doesn’t have to be as challenging as you might think, but it helps if you know what pitfalls to avoid. Check out the tips below to ensure your foreclosure buying experience is a seamless as possible.
- Know that you don’t know it all
The first mistake most homebuyers do is going through the process of purchasing a foreclosed home without even consulting a real estate professional. The money you think you have saved from paying an expert is not even enough to cover the significant repairs and unforeseen costs that a foreclosed home can come with. In other words, get a pro on your side. - Skipping the inspection
Buying a foreclosed home that you have not thoroughly inspected is a huge mistake that can have serious repercussions, especially in your finances. - Going over budget
Set a firm maximum price that is within your budget and is nearest to the actual value of the foreclosed property. Purchasing more than what you can realistically afford can cost you your peace of mind and sanity. - Having eyes for only one property
Don’t fall in love with a property too soon. Emotions come and go, but poor financial decisions can last a lifetime. Don’t think that the property only needs a small amount of repair when in reality it is beyond what you can afford. - Thinking only about the short term You have to take into consideration how a particular foreclosed home you want to buy will fare in the market in the coming years. If it’s likely to decline further in value, then perhaps it’s not as great of an option as you thought.
Ready to check out foreclosure properties in the Denver area? Contact Metrowest today – we specialize in these types of sales and would love to help you start the process.