Buying bank owned foreclosures
July 28, 2010
So you are finally ready to become a home owner and you have heard all the buzz about bank owned foreclosures. The great discounts and incentives attached to them, the ease with which you can seal a deal on your new home and the savings you can make when you finally make the purchase. Before you make the final plunge some due diligence is definitely in order.
What Are the Right Questions to Ask?
One of the most significant things to ask is whether you have made a thorough research of the place where your choice is located. You can enlist the help of a local real estate professional who specializes in bank owned foreclosures in scouting the neighborhood so to speak. They can give you an honest rundown on the area, including schools, community services and employment opportunities. They will also help you negotiate for a good price for your home.
The next thing to ask if you are buying bank owned foreclosures is how much repairs are you looking at with the property you are interested to buy. A way to know this is knowing how long the property has been sitting on the market. If the home has been around for quite a while the price will be quite low but you can expect more extensive repairs. If they have just been made available recently, then the value would be higher but repairs may be at the minimum. You have to set aside some time to inspect the property and assess the cost of the repairs against the price of the property. Crunching the numbers will tell you whether there’s a lot of savings to be made in your purchase.
When you are finally ready to buy a home from a selection of bank foreclosures it is time to match your offer with the market rates. For this you can ask your broker to prepare a comparative analysis of your home cost and the prevailing market prices. This way you can be sure you are getting a good deal on the home you wish to buy. The prices vary depending on the type of property and the length of time it has been on the market. Property value usually goes down the longer they stay on the market.
So while bank owned foreclosures are the best deals available in the market, you should be prepared to conduct your own research.