Is a foreclosure home a deal?
With more and more listings coming up as a judicial sale or bank owned property many buyers are asking if theses properties are a deal. Here are some of the hurdles a buyer may come up with when buying a home that has been ordered for sale by the court.
- Buy “As Is Where Is”, The court or financial institution may not know what has happened to the property in the past and do not want to take responsibility for any issues. For example, if a house had the basement developed without a permit, or an extension on the home that was never approved, they likely do not know. If the basement floods ever other year and the source of the problem was never fixed, that is another example of an unknown problem.
- The real property report will not be provided by the courts or lending institution. This land survey lets you know the position of any buildings and fences.
- If the property is a judicial sale then the preferred offer would likely be unconditional. This means it is best to have any financing figured out prior to an offer.
- Some judicial sales / court sales still have the old owner or tenant in the property while the foreclosure sale is taking place. This may lead to restricted viewing times. If the previous occupant damages the property then the buyer really has no recourse because they purchased it as is.
So you maybe wondering is a foreclosure a deal. If it can be purchased for a good price it should be, especially when factoring in the risks. Just because it is listed or on the MLS it may not be always a good deal. like any other property some patience a perseverance is required. Prior to purchasing the property you may request from your REALTOR the comparable properties for the community.