Chances are that you’ve heard the word “foreclosure” uttered a few times in the last few years. Maybe you’ve had to foreclose on your home, or you’ve had friends or family members who have had to foreclose on their homes. If you’re looking to buy a foreclosed home, there are a few factors you need to consider before you make your final decision:
They are Cheaper.
Often, you will get a great financial deal on a foreclosed home. While the discount isn’t as steep as it used to be a few years ago, you will still likely pay around 5% less for a foreclosed home than similar homes in the area.
You are Assuming a Risk.
When you buy a foreclosure, you won’t necessarily have the luxury of knowing the history or downfalls of the home. You will buy the home in an “as is” condition, so know that you won’t necessarily be able to see some problems like a leaky roof or a problem with the foundation.
The Home’s Location May Be Less than Desirable.
Foreclosed homes that are affordable usually aren’t in the most desirable of locations. This is due to the fact that home supply and demand dictates which houses sell quicker than others. Make sure you do the research about the location so you make the best decision while you take into account schools, walkability, and other important factors.
They’re Harder to Buy.
When you buy a foreclosure, all of your financial stats need to check out exactly or else your offer will be passed over. Because it’s a bank selling the house, it really is all about a numbers game.
