A lot of people assume that buying foreclosures through a short sell is cheaper and easier than buying normally. This is not always the case as purchasing a foreclosure can be complicated, and you could run into some costly mistakes. It is important that you understand what some of these mistakes are and how you could avoid them.
Limiting Yourself To Foreclosures
When looking at property, you should not limit yourself to foreclosures. There are some very competitively priced foreclosures on the market, but there are also competitively priced traditional listings as well. Putting on blinders when you look at buying property could be a costly mistake as you miss out on a property that you would really want.
When you limit yourself to foreclosures, you are limiting yourself to homes with baggage. There are often liens against the property and large amounts of repairs which need to be completed. Limiting yourself to foreclosures could also mean that you do not end up in the neighborhood that you want because there are no foreclosures there.
Going At It Alone
It is important that you look at hiring a real estate agent that has experience in the foreclosure market. You need to have the guidance of a professional when looking at this market because of the complexities that could come. The agent that you hire will need to have knowledge and experience of buying and selling these properties in the area that you are looking at.
Of course, you should remember that the agent is not a lawyer. Foreclosure regulations and laws can be tricky, and they will vary depending on the state. You should not rely on the agent for legal advice and be prepared to hire a local real estate attorney to help you with any purchases.
Not Knowing The Basics Of Foreclosures
While it is important that you have a professional help you with your house hunting, you should know the basics of the foreclosure process. Learning the terms used will help you ensure that the property is the right one for you. Knowing the basics will also help you when it comes to negotiating a better price for the property.
Skipping The Inspection
You should never skip building inspections when you buy a house whether it is a traditional listing or a foreclosure. The foreclosure that you are looking at could appear to be in good condition, but you have no way of knowing what is happening in the walls or under the floors without an inspection. A survey in 2011 found that 72 percent of US homeowners found that a home inspection helped them avoid potential problems.
As foreclosure homes have history, you need to ensure that you are not buying a list of problems. You can contact that American Society of Home Inspectors for a list of certified inspectors in your area. Getting an inspection can save you a lot of time, money and frustration in the long-run.
There are many mistakes that you could make when you buy a foreclosure. The laws and regulations regarding these properties are tricky, and you need to have a lawyer help you. You should also ensure that you have a home inspection done.