Mistakes to Avoid When Buying Foreclosed Homes
One person’s trash is another person’s treasure — or in the case of foreclosed homes, one person’s tragedy can be another’s lucky day. U.S. News & World Report noted that in the third quarter of 2008 there were more than 750,000 foreclosure filings on U.S. properties. According to RealtyTrac, this is a 71% increase over the same period just a year earlier.
If you’re in the market to buy property, the number of foreclosures available at lower prices just might seem like the deal of a lifetime. While you can often purchase foreclosed properties at below-market value, there are a number of costly mistakes you’ll want to avoid. The top 6 mistakes of buying foreclosed homes, according to U.S. News, include:
- Trying to buy a foreclosed home without the help of an experienced agent
- Relying on real estate agents for legal advice instead of a real estate attorney
- Expecting the foreclosed property to quickly increase in value after the purchase
- Becoming blinded by a low sticker price and forgetting that most foreclosures require substantial (and costly) repairs
- Trying to search all foreclosures at once rather than targeting a specific location
- Assuming banks will accept any offer
For more on the pros and cons of foreclosure purchases, see Should You Buy a Foreclosed Home?
