subject: Thinking Of Buying A Foreclosed Home: Follow These 5 Tips [print this page] The current market conditions are indeed favorable for you for home purchase. The record low home mortgage rate gives you an incentive to make the plunge into home buying. If you want to make it really a good deal, you may be willing to have a look at the foreclosed home properties. Generally the foreclosed properties are sold at a price which is lower than their market values. This in turn offers you the chance to save money on the purchase. However, it is to be kept in mind that all foreclosed properties may not be great buying option. As like in case of any other financial transaction, here also you need to do adequate research and have to make an informed purchase. If you are planning to purchase a foreclosed property, you need to follow these home buying tips.
1. Participate in auctions & understand the process
If you are willing to buy a foreclosed property at a public auction, you need to understand the public auction process well. You must keep in touch with the auction house and must acquaint yourself with the bidding norms and guidelines. If you are a prospective buyer, these public auctions of foreclosed properties offer you wonderful opportunities to own a home. But, you should have a proper budget in place and you need to ensure that you dont commit the mistake of overbidding.
2. Go for HUD home listings
Some foreclosed properties are listed by the Department of Housing and Urban Development (HUD). HUD is a government authority and it lists the true value of the foreclosed properties. Though non-HUD foreclosed properties may be listed at a low price, but there may be some serious issues such as vagueness in the deed or title, scams etc. This kind of potential dangers are eliminated if you work with the government authority such as HUD.
3. Hire a property inspector and an appraiser
Before you make the final decision to purchase a foreclosed property, it is advised that you should hire a professional home inspector to examine your house. A professionally qualified and experienced home inspector will be able to detect structural flaws in the property. Again, an independent appraiser finds out the true current market value of the property. This will help you analyze whether or not you have made the purchase at a right price.
4. See the property and check the neighborhood
You must have a look at the property and the neighboring area in person. Dont plunge into purchase unless and until you are satisfied with the conditions of the home and the neighboring areas.
5. Hire a property attorney
It is important that you should have all the documents and paperwork ready with you before making the purchase. It is advised that you should take the assistance of a professionally qualified property attorney in the entire property buying process so as to avoid committing any mess.
You should not expect to move out of the home immediately after the purchase. Many of you may consider the property purchase as a real estate investment and for making profit by selling the property at a higher price. But, in the current market conditions, the value of the home may not appreciate at a very high rate and moreover there are the maintenance and repair costs.
