It seems that there are more and more bank foreclosed homes for sale out there these days. I suppose this only makes sense with the poor economy. This can be used as an opportunity for you to save money on your first, or next house. While bank foreclosed homes for sale often can be purchased at lower prices, they sometimes also carry additional risks. If you are in the market for a new house, and are considering looking at bank foreclosed homes for sale, you'll want to keep a few things in mind, to make sure you get the best deal possible.
Get an appraisal:
Bank foreclosed homes for sale should typically be appraised by a professional. This will help to ensure that you get the best deal possible on your new house. A professional appraiser will compare the house to other comparable houses in the area, giving you a better idea how much it's worth. If you can purchase bank foreclosed homes for sale and get instant equity, it's a much safer route to take. If you don't get the house appraised, you my pay too much, and have a hard time with financing. You can get free foreclosure listings, but you need to make sure they are a sound investment.
This is different than appraisals, but is equally important when considering bank foreclosed homes for sale. A house inspection will cost you some money, but may save you a lot in the long run. Essentially, a professional house inspector will go though the house, looking for needed repairs, especially those that represent unsafe conditions. Bank foreclosed homes for sale may have structural problems, not just cosmetic flaws. Getting a professional inspection will cost you a few hundred dollars, but could save you thousands over the long run, and reduce the number of unexpected problems down the road. They are well worth the money. If you find that the bank foreclosed homes for sale that you are interested in need too much work, it may be wise to continue searching for a different one. Don't take anything for granted, these houses can, and often do, have safety concerns. Don't put yourself or your family into a dangerous situation. Saving a little money on bank foreclosed homes for sale just isn't worth jeopardizing your family.
You will need to consider the cost of repairs on all bank foreclosed homes for sale. This is where the house inspection listed above comes into play. Get estimates of the costs of repair for anything you cannot or should not do on your own. This will help you determine if the bank foreclosed homes for sale that you are considering will make a good investment. Many people are surprised at how much money structural repairs can cost. Some repairs could cost tens of thousands of dollars. You don't want to make the estimate on your own, unless you are fully capable of doing the repairs on your own. For some, having friends in the construction business can come in very handy. If you know someone that can help you with repairs, you can save a lot of money. Just don't count on your friends to do too much of it for you. Bank foreclosed homes for sale may very well have a lot of needed repairs, so it's extremely important to know how much they will cost you, so you don't pay too much. Reduce the number of costly surprises by getting realistic repair estimates on all bank foreclosed homes for sale. Who is selling seized houses?
Many bank foreclosed homes for sale will have liens, and you should be careful of what you're purchasing. You should expect a lender lien on the house, it's basically inevitable. There are some other liens that could be attached to the house as well. Tax liens are not uncommon on bank foreclosed homes for sale, and could follow the house to you, the new owner. Normal everyday citizens can also attach a lien to a house. Perhaps a repairman is owed a lot of money went ahead an attached a lien to the house. You really want to eliminate the surprises you face down the road when considering bank foreclosed homes for sale. Liens will generally need to be satisfied with the sale of the house, so it's very important to know what you're getting yourself into. Essentially, you are making sure the bank foreclosed homes for sale don't cost you too much money beyond the purchase price. Liens can quickly add tens of thousands of dollars to the overall cost of the house, so they play an important role in the decision making process.
Bank foreclosed homes for sale will typically go up on auction. If you aren't careful, you could easily find yourself in a bidding war with another interested party, like the lender. Set a price in your mind, taking into account needed repairs, the appraisal value, and additional liens that are on the house. Once you've set the price, don't go above it! Bank foreclosed homes for sale can be purchased at a reasonable price, but if you get caught up in the moment during an auction, you will likely pay too much. That's essentially how auctions work. Multiple bidders will make their bids against each other. It's very easy to get caught up in emotion during the heat of the moment. When making bids on bank foreclosed homes for sale, it's best to be cold blooded, so you don't pay too much for your new house.
These are just some of the things to consider when you are looking at bank foreclosed homes for sale. The bargain can be found, as long as you are willing to put a little effort into research. A house will likely be the biggest investment you ever make, so it's important to make sure you get a good deal, and limit the number of expensive surprised you face down the road. If you are in the market for a new house, bank foreclosed homes for sale are worth checking out. You just may find the house of your dreams, at a price that just cannot be beat. Happy house hunting.
Did you lose your house? If so, you may want to use this to get into another house for less. How long should you wait?