Where some see the potential to save big on a piece of property, others may see a potential money pit. The reason is simple – when you buy a foreclosed home, it is usually sold “as is”, meaning the bank will not fix any issues with the home. In a typical home sale, the seller must disclose every flaw – this is not the case with a foreclosure.
This doesn’t mean you should be scared off from buying a foreclosure (commonly listed as “bank owned” or “real estate owned”) – rather, realtor.com has a few tips on how to proceed.
- Look into how long the home has been vacant. You’ll want to know to be on the lookout for potential damage from frozen pipes from a cold winter.
- Get an inspection. This is good advice for any home buying situation, but especially when buying a foreclosure.
- com suggests adding contingencies into your offer – the bank may not accept them, but it’s worth a shot.
- Get a title search on the property. If the previous owner was having financial issues, it stands to reason there could be a lien on the property.
Taking into consideration the information you find from this research might help you avoid issues on your home buying journey.