Foreclosures aren’t as common as they were at the peak of the housing crisis; however, they do still happen and there are definitely great deals to be found. Foreclosed properties are houses whose owners were unable to pay the mortgage or sell the property, and as a result, the lender assumed ownership and is now trying to sell it to recoup some of its costs.
These properties are often listed below market value and can save buyers a nice chunk of change. But only if you do your homework.
Check out the tips below to make sure you’re getting the best value for your money when buying a foreclosure.
- Research how long the home has been vacant. You’ll want to find out if it has endured freeze and thaw seasons unattended, or experienced anything that may have caused significant structural damage.
- Hire a home inspector to fully check out the home for major problems. You can also ask the inspector to give you an estimate of how much money it will take to make repairs.
- Also hire a professional to conduct a title search. This may help you avoid unexpected financial issues down the road. For example, if the IRS has a lien on the property for back taxes, that debt doesn’t follow the owner – it sticks with the property, making the new owner (you) responsible for repayment!
The process may sound a bit daunting, but if you hire a real estate pro that’s experienced with these types of sales, they can help navigate the way and get you the best value for your money.
Contact the team at Metrowest today – we specialize in foreclosed and distressed properties and we’d love to help.