In the current real estate market, it’s not hard to find foreclosed properties to buy. But a home that looks like a great bargain on the auction block may not always be one.
Listen to BOB VILA ON BUYING FORECLOSURES, or read text below:
Buying bank-owned homes, especially at auction, is not for first-time homebuyers or the risk-averse. Most foreclosed properties aren’t available for inspection, so it’s often hard to know how much money you’d have to invest in the property to make it saleable again. Many will not qualify for a mortgage and require cash to purchase. It may fall to you as the buyer to evict the building occupants if they’re still living there. And even if you think you know the average home value in the neighborhood, even one foreclosure in the area can bring that value down.
A good buyer’s agent with experience in foreclosure sales will help you find properties and guide you through the process. You also need a good real estate lawyer to interpret the contract, which will be very different from a conventional sale.
Short sales, while also unconventional, are a very different animal.
Bob Vila Radio is a newly launched daily radio spot carried on more than 60 stations around the country (and growing). You can get your daily dose here, by listening to—or reading—Bob’s 60-second home improvement radio tip of the day.