Buying a foreclosed home is appealing to some potential home buyers for a variety of reasons. The process itself is very different from your typical home sale, so it’s important to understand its nuances. Here’s a few things that you need to consider if you’re thinking about buying a foreclosed home.
The Prices Are Typically Much Lower
Foreclosed homes typically will appraise lower and be sold at a much more competitive price by the seller. If you’re thinking about buying a foreclosed home, chances are that you’ll be getting a huge bargain on it. This means you could potentially buy in a better location or size than usual. This opens the door for a lot of advantageous financial gains, particularly if the home value appreciates, and you sell the home for a profit in the future.
There’s No Room for Price Negotiation
Although the asking price will be much lower than if it were not a foreclosure, there will not be the flexibility in negotiating a price. Typically, what you see is what you get when it comes to pricing. In turn, you’re sacrificing the ability to haggle on the price for an already lowered asking price.
Get Your Loan Pre-Approved Before You Start
In most foreclosure cases, the seller requires the buyer to be pre-approved on their loan before you can even begin your search. The foreclosure market moves incredibly fast, which is good if you want to get moved in and settled in your home quickly, but requires all your ducks to be in a row before even beginning.
“As Is” Home Sales
A foreclosed home will often be sold “as is” buy a bank or third party. This typically means you should not expect a home in perfect condition. However, you will likely be saving a fair amount of money on the property itself, so you could easily attribute a portion of your budget to covering maintenance and making upgrades.
Thinking About Buying a Foreclosed Home? We Can Help!
If you’re thinking about making the plunge and buying a foreclosed home, we can help! Essential Realty is a team of expert realtors specializing in helping your find your Miami-Dade County dream home at an affordable price. Contact us to learn more about the intricate home buying process for foreclosures, or to simply discuss real estate trends. In the meantime, feel free to take advantage of some of our buyer’s resources to help you get started. We look forward to hearing from you!