Should I be Targeting a Foreclosure for my Home Purchase?
Ready to buy a home? Considering a foreclosure? Foreclosure homes are not your typical real estate transaction. They are not black and white, not cut and dried, but full of nitty-gritty details that turn off many buyers. While you want the best deal possible, you might not want the headache and worry that accompanies buying a foreclosure.
What is a Foreclosure?
A foreclosure is real estate that is repossessed because the owner was unable to make his or her mortgage payments. First, a bank will file a notice that the homeowner is 90 days behind on mortgage payments. From this point the homeowner still has time to refinance the loan or attempt to sell the home. If the homeowner can’t make the payments the bank schedules an auction to sell the home to the highest bidder. If the home fails to sell at the auction, it becomes property of the bank and will be listed with a local real estate agent.
Advantages of Purchasing a Foreclosure
The most obvious advantage of buying a foreclosure is getting a terrific deal. Banks look to sell homes fast. That means sale prices can be as low as 20% below market value according to Bankrate. Additionally, there is opportunity to negotiate price. While there are plenty of positives to purchasing a foreclosure, there is inevitable risk associated with a foreclosure.
Disadvantages of Purchasing a Foreclosure
Foreclosures aren’t always in the best condition. In fact, they are typically in an abysmal state. In the time when homes are foreclosed and before they are sold, plenty can go wrong. Mold builds up, pipes break, bug infestations take over, intruders vandalize and more. Unfortunately, banks typically refuse to make any repairs. They sell homes as-is and you aren’t always given the chance to bargain.
If you would like to find a foreclosure, your first step is finding an agent that specializes in foreclosures. Good deals don’t always come easy and you need a professional to help you along your journey. Contact Berkshire Hathaway HomeServices John M. Brabham Real Estate to learn more about foreclosures in the Sumter area!