If you’re in the market for a foreclosure, there are definitely deals to be found in the Denver metro area. While this type of transaction differs from traditional home purchases, the process doesn’t have to be as challenging as you may think. Here’s we’ll cover some tips that will help you navigate your way through purchasing a foreclosure.
- Get an agent and a lender
The first two steps in buying a foreclosure should happen almost simultaneously. First, you’ll want to find a real estate agent who’s highly experienced in these types of transactions. Second, get a preapproval letter from a lender. You may be inclined to find a house first and worry about financing later, but foreclosures can be snatched up very quickly – if you want to get the best deal, get preapproved first.
- Price depends on sales pace
There’s no rule of thumb on what the bank’s bottom line is on price. Just as with any other real-estate purchase, you have to look at the recent sales prices of comparable properties and expect to pay around the same.
- Don’t expect a repair discount
Keep in mind that foreclosed houses generally are sold as-is. That means that you shouldn’t expect to get a discount to compensate for repairs. Remember to get a complete inspection before buying so you have an accurate idea of what repairs need to be made and what you can afford.