In hot markets like Denver, setting your sights on a foreclosure property can greatly expand your options as you house hunting in an area with little inventory or higher prices. There are bargains and deals to be found, but before you start the search for a foreclosure property it’s important to know how that type of property sale differs from traditional sales. Knowing what you’re in for when buying a foreclosure property can help you avoid costly mistakes, prepare you for the road ahead, and make sure your experience is as seamless as possible.
- Don’t go it alone- Buying a foreclosure can be a more challenging than traditional sales, but the rewards are well worth it. But because it’s not a traditional sale, it’s imperative to find a real estate agent versed in the complexities of the foreclosure market. Whether you’re looking at a pre-foreclosure, short sale or bank-owned properties, you’re going to need the guidance of a professional (that’s where we come in!)
- Don’t set limits- It’s totally okay to go into your property search with the intent to purchase a foreclosure, but those are the only homes you should check out. Yes, there are some competitively priced foreclosures on the market, but the same can be said of traditional listings. There are also short sale options as well as REO (bank owned) properties to consider.
- Educate yourself- Sure, you’ve got a pro in your corner, but you’re still going to have to do a little research on your own. Know how much you can spend. Know the neighborhood where you want to buy. Target a specific neighborhood or two to avoid becoming overwhelmed by listings.
- Don’t skip the inspection! Foreclosure properties can often be sold as-is, so if there are significant issues you’re going to want to know before you buy. Tag along while the inspector is looking at the property. Ask questions. Take notes. Most inspectors charge $300 to $500 for their services; but you’ll need to figure out how much it’s going to cost to fix the issues.
Ready to find the perfect foreclosure property for you or your family? Contact Metrowest today and start the search! Our experienced professionals specialize in these types of sales and we’d love to help.