4. Search Foreclosure Listings
Real estate agents and realtors often have leads on foreclosures available for sale. Nevertheless, there are many other avenues that buyers can use to acquire potential properties. check out:
Note that you don’t necessarily have to shop locally. However, applicable laws and regulations cover the jurisdiction where the home is located and not where the buyer is located.
If you find a property that interests you, bring it to the attention of the real estate professional you are working with. Self-shopping is not recommended, especially not recommended for the first time.
3. Get mortgage pre-approved
Foreclosure transactions usually have a quick timeline. Thus, you would not want to mess with financing after the fact. Instead, you must obtain pre-approval from a bank or lender before making your offer.
Pre-approval benefits buyers in a number of ways:
- You know in advance how much you can afford on a home, helping you target properties more efficiently.
- If your offer is accepted, you have a direct, fast route to finance.
- Banks and short sellers will be more willing to work with you.
2. Order an Inspection and Appraisal
Unless you’re buying through a direct auction, you’ll almost always have the chance to view the property before you buy. The sellers also extend a window to allow you to professionally appraise and inspect the property.
It protects you from many risks associated with buying foreclosure properties. You have a neutral, reliable assessment of the home’s market value. That way, you’ll know if you’re getting a deal that makes up for the associated drawbacks. You’ll also save yourself from unwanted surprises, as the inspector will note flaws, damages and problems. Equally importantly, you will also have a clear idea of how much it will cost to get them fixed.
In this regard, remember that you don’t need to avoid a house just because it has damage or problems. You just want to make sure that the purchase price of the property is in your favor even after including the cost of necessary repairs.
