Foreclosed homes are becoming more and more popular an option for seeking to buy their first home, and its pretty easy to see why. Who doesn’t want a good deal on a great piece of real estate. But with more and more buyers limiting their scope to just foreclosed homes, it’s becoming increasingly important to find out about some of the lesser known regulations and ins and outs of purchasing a foreclosed home.
Generally, foreclosed homes are listed “as is” by the seller. Unfortunately, the seller, — usually a bank or lender — will usually refuse to complete repairs on the property, so what you see is not necessarily what you get. Broken appliances, uninsulated walls, and leaky roofs are all hazards to watch out for when looking at what may appear to be a perfectly sound looking home. Inspecting the home thoroughly before moving forward with the purchase is essential to not getting blind sighted by unforeseen imperfections, and paying a licensed professional to inspect the property may be a viable — if not cost efficient — alternative.
Say you find the foreclosed home of your dreams, and it’s an absolute steal. You have it inspected and find that it’s not all it seems to be, but it’s still a must buy for your family. Chances are, you’re going to have to make some significant repairs, so remember to factor that into your overall purchasing budget. Repairs can costs upwards of $30,000, and all of a sudden, that steal of a deal is about to break even. But even professional home inspectors aren’t perfect, and the savvy home shopper would factor in up to an extra $20,000 in the event that even more unforeseen issues arise with the house.
Of course, if you’re fully equipped to handle the challenge of repairing a foreclosed home, you and your family stand to save thousands by buying pre-owned or foreclosed. And with the right training and foresight, even the non do-it-yourselfers can save a considerable amount by working with an agent and licensed inspector.
If you’re looking for a great deal on Erath County homes for sale, foreclosed or not, give us a call.