Pitfalls to Avoid When Buying a Foreclosure

Due to their lower price points, it’s no wonder that purchasing a foreclosure is an appealing option for many would-be home buyers, especially in tight markets like Denver.  While not exactly the same as a traditional home sale, buying a foreclosure doesn’t have to be as challenging as you might think, but it does help if you know what to avoid. Check out the tips below to ensure your foreclosure buying experience is as smooth and seamless as possible.

  1. You need a professional
    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 an experienced pro on your side.
  2. Skipping the inspection
    Buying a foreclosed home that you have not thoroughly inspected can prove to be a very costly mistake. An inspector can tell you what’s wrong with the house beside’s the cosmetic repairs that are visible from the outside.
  3. Going over budget
    Set a 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 is never a good idea.
  4. 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 trick yourself into thinking a property only needs a small number of repairs when in reality it is beyond what you can afford.
  5. 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!

 

 

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