Home shoppers who want to find the best possible price for a home often find themselves looking through the distressed housing inventory in their local area in the hopes of finding a great deal. While it is true that distressed or foreclosed homes are often priced much less than other available homes, there can be condition issues or other factors that can greatly affect the home's actual value and must be considered carefully by a prospective buyer before making a final decision. If you are interested in stretching your housing budget by purchasing a foreclosed home, use the following tips to make sure that doing so is a good financial move for your family.
Secure any necessary financing before beginning your search
Since the best foreclosed home values rarely last on the market more than a few days, potential buyers should make sure their financing is in order before beginning to look for one. Offers on most foreclosed homes, particularly those offered by the REO departments of major banks usually require written proof that prospective purchasers have the cash or necessary financing to purchase and close on these homes as part of the initial offer submission process. To give any offer you make on a foreclosed home the best possible chance of success, work with your lender to get firm written loan approval for a mortgage before beginning to shop.
Verify the condition with experts to understand the actual cost and scope of necessary repairs or renovations
Disclosure documents are usually provided by the lending institutions selling the foreclosed homes, but because these documents were not prepared by a previous owner who resided in the home, they rarely offer significant details about the home's actual condition. In addition, the foreclosure process can take months to finalize, meaning that the home may have been left vacant for long periods of time after the previous owner was foreclosed upon. To make sure that prospective buyers get an accurate assessment of the home's condition and the amount of money and time it will take to do any needed repairs or renovations, it is wise to have the home inspected by both a home inspector and a repair contractor before making an offer to purchase.
Choose experienced representation
Prospective buyers who are interested in purchasing a foreclosed home should be prepared for a more complicated home buying process than they likely would experience if buying an owner-occupied home. With stacks of paperwork and specific deadlines to meet, prospective buyers who want to enjoy the best chances of success should make sure that their real estate professional has experience in helping buyers with the purchase of foreclosed homes. Their experience will help buyers avoid potential mistakes and help to ensure that their home purchase process is positive and worthwhile.
For more information or assistance, contact companies like Sun Royal Realty.