What to Consider Before You Buy a Home in Foreclosure?
Buying a home is an expensive process that can put a big dent in your savings account. If you want to get the most bang for your buck or make sure you’ve got some leftover money for furniture and bills, buying a foreclosed home can be a good way to get more houses for less. However, it’s important to know what you’re getting yourself into before you buy a foreclosed home, which means taking some time to research the process. If you’re considering buying a home in foreclosure, here’s what you should look for to make sure you find the best one.
Get a Home Inspection
One of the most important things you can do when buying a house in foreclosure is getting an inspection. The condition of foreclosure homes is one of the biggest risks you take as a homeowner, so it’s important to get a thorough inspection before you buy. Make sure you’re working with a real estate agent and inspector who are familiar with foreclosures because they know what to look for when it comes to finding the best foreclosure homes.
In most cases, a foreclosed home is going to have a bit more wear and tear than a regular home. Homeowners who can’t afford their monthly mortgage payments tend to have a difficult time affording maintenance as well, so these two things come hand in hand. In rare cases, a homeowner may vandalize or intentionally damage a home if they know they’re being foreclosed on. While buying a foreclosed home is a great way to find homes sold below market value, you need to be thorough when it comes to the inspection to make sure you find the best house.
Check the Home History
As is the case with cars, knowing the history of a home can help you make a more informed decision as a buyer. You want to find foreclosure homes with a fairly clean history, but that can be difficult depending on where you’re at. The good news is, there are a few different ways you can check the history of a home before you get started with the buying process.
- Realtors: Talking with realtors is one way to find out more about the history of a home, including the names of previous owners. A realtor can also help determine if there are any particular rules for homes in that neighborhood.
- Census records: You can also look at census records to get an idea of the history of a particular home. Census records include things like the names, ages, and marital status of people who have lived in the home, which can be helpful when deciding whether or not to buy property.
- Historic homes: Historic homes can generally be looked up in the National Registry of Historic Places, although many homes don’t fit the requirements to be a part of the registry.
Look for Winterization
If you’re buying a bank-owned home that’s been foreclosed on, it’s important to look at all the little things that can affect the value of a home. Winterization is one of the most important parts of a modern home, but a lot of older homes lack the upgrades that help protect against cold weather.
Check Out of the Neighborhood
One of the best parts about buying a home in foreclosure is the fact that you can afford homes in better neighborhoods without spending a fortune. That being said, taking a close look at the neighborhood a home is in should be an important step in the buying process whether you’re buying a foreclosure or not. Here are some of the things you should look at in terms of neighborhood quality:
- Crime rate: Better neighborhoods tend to have lower crime rates, so check out the crime rate in the area a home is located in before buying.
- Schools: When you live in a better neighborhood, you get access to better schools. Before purchasing, take a look at the schools that are near a foreclosed home.
- Driving distance: It’s also important to find a home that’s somewhat near the places you need to go, so look for something that’s close to grocery stores, restaurants, and other common destinations.
Compare Prices
Just because you can buy a house below market value when it’s been foreclosed on doesn’t mean that all foreclosed homes are equally cheap. Make sure you compare the price of the foreclosed home you’re considering buying to similar homes that aren’t in foreclosure, that way you can figure out if you’re getting a good deal or not. A real estate agent can help you figure out if a particular foreclosed home for sale is a good deal.
The Verdict
If you want to get the most home for your money, buying a home in foreclosure is one of the best things you can do. However, it’s important to focus on the inspection and take a close look at any foreclosed homes before buying, since they’re typically sold as-is. The more thorough the inspection, the more likely you are to find a home you love. In addition to the condition of the home, you should also look at the neighborhood and how it may affect the property value. With the help of a good real estate agent and some time and effort, you can find an excellent house for sale in foreclosure.
