Acquiring a property for a very low cost is an appealing prospect for any home buyer. One popular way of doing so is with a bank owned property or foreclosure. This might be especially appealing if you are a first-time buyer with a limited budget, but before you go ahead a sign the contract, there are some crucial steps to take first. What are they?
It will be hard to determine the true condition of the property simply by walking through it. One way to find out is by having the property inspected by a certified home inspector. It’s possible that your realtor will tell you not to bother spending the money on this because you’re buying the property “as is”, but is that really the best reasoning? A home inspectors’ job is to find out what areas of the property need work so that you go into the process knowing exactly what you are buying, this would be difficult to determine without a thorough check.
Another issue that often arises with bank owned properties is that they have not been well maintained which means you might need to spend a lot more money on it than you realize. Very often the property is left in a bad state and full of rubbish and junk, are you prepared to be responsible for all of this?
While buying a bank owned foreclosure can prove to be a very good purchase, its best to do all you can before you make the final decision to ensure that you know exactly what you are getting and what money you will need to spend on it to get it habitable.