Bank owned properties or foreclosures are something many potential home buyers look into as a way of getting on the property ladder for a relatively low cost. Are you considering this option? Perhaps you are a first-time buyer with a tight budget and feel this is the right choice for you. While purchasing a bank owned property can be a great option, its important to go into the process with as much information about the house as possible. What are some ways you can do this?
If you are using a real estate agent, be wary if they tell you not to bother with a home inspection. They may well reason that because you are buying the property “as is” there is no point in spending extra money on an inspection. Although that may seem like a reasonable argument, how can you really know what state the place is in if you have not had it thoroughly looked at by a professional who knows what to look for? What if the home has some major structural problems? This would end up costing you thousands.
Another reason for having a home inspection performed is that, because of the nature of bank owned foreclosure properties, it is likely that very little maintenance has been done on the home. Sometimes a homeowner will even cause damage or strip the home of anything valuable before vacating it. It might be full of rubbish and have been vandalized. These are all things you, as the new owner, would be financially responsible for.
To summarize, then, although buying a foreclosure property can be a very good purchase, make sure you get it inspected before you sign any contract. In this way, you will be aware of what’s involved in the fixing up of the property and can prepare yourself for the extra expense.
If you are using a real estate agent, be wary if they tell you not to bother with a home inspection. They may well reason that because you are buying the property “as is” there is no point in spending extra money on an inspection. Although that may seem like a reasonable argument, how can you really know what state the place is in if you have not had it thoroughly looked at by a professional who knows what to look for? What if the home has some major structural problems? This would end up costing you thousands.
Another reason for having a home inspection performed is that, because of the nature of bank owned foreclosure properties, it is likely that very little maintenance has been done on the home. Sometimes a homeowner will even cause damage or strip the home of anything valuable before vacating it. It might be full of rubbish and have been vandalized. These are all things you, as the new owner, would be financially responsible for.
To summarize, then, although buying a foreclosure property can be a very good purchase, make sure you get it inspected before you sign any contract. In this way, you will be aware of what’s involved in the fixing up of the property and can prepare yourself for the extra expense.
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