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Tips for Buying a Foreclosed Home in Observatory Park

November 9, 2016

What’s all the buzz about foreclosed properties? Many investors and savvy homebuyers love snatching up foreclosed properties in Observatory Park because of the low prices and high return on investments. But, not every foreclosed property is a deal worth making. Here are some tips for buying a foreclosed home:

Understand the different types of properties.

Pre-foreclosure or short sale Observatory Park properties are still under control by the homeowner, and both the homeowner and the lender must approve any offer that comes through. These properties tend to be in better condition because action was taken to avoid foreclosure. Auction properties are usually cash only sales that are awarded to the highest bidder. The lender cannot make a profit at an auction sale, so investors and bidders receive great deals on properties. REO (real estate owned) properties are in full possession of the lender because no one big a high enough amount at the initial auction. At this point, lenders are typically eager to get the property off of their hands, but keep in mind that properties will be in a more poor condition by the time they get to this stage.

Be competitive.

Observatory Park homes in foreclosure are attractive not only to homebuyers looking for a place to live, but also to investors on the prowl for a good deal. Because of this heightened interest, expect the competition to be fierce when it comes to negotiating a deal for a foreclosed home in Observatory Park. It’s best to always work with a real estate agent for this reason. Experienced real estate agents are strong negotiators and more familiar with property values, so they’ll prevent you from overpaying because you think you’ve snagged a deal.

Never skip the inspection.

Observatory Park foreclosed homes may sit on the market for a long time, leading to a buildup of problems that go unrepaired. Or, in many cases these homes previously had disgruntled owners that damaged the interior in some way. Never go through with purchasing a foreclosed property without getting a thorough home inspection. You may think the house looks decent from the inside, but can you tell what’s going on behind the walls or underneath the floorboards? Not without a qualified inspector.

Remember the repairs.

Some Observatory Park homebuyers may get overly excited when they see a low price on a foreclosure home, but remember that this is not the only expense when it comes to purchasing the property. Many of these foreclosed homes will need an extensive amount of repairs, so before making an offer, be sure to factor in the cost of these repairs and see if the price is still within your budget.

Get a helping hand.

Foreclosed properties are heavily regulated, and each state has its own set of laws. When you’re ready to look into buying a foreclosed home in Observatory Park, be sure to find a real estate who has experience in dealing with foreclosures. Although every real estate transaction can be complex, there is an added layer of complications and legal regulations that come along with foreclosed properties, so you need to have an experienced professional by your side.
Ready to search for the Observatory Park home of your dreams? Contact Elevation Realty to be connected to a team of experienced real estate experts ready to help you on your home buying journey.