Four Tips for Buying Foreclosed Property Worth Your Investment
According to Realty Trac, in 2013, the Virginia cities of Chesapeake, Suffolk, and Virginia Beach City experienced especially high foreclosure rates, compared to the rest of the state. About one out of every 580 homes experienced foreclosure in this area.
Now that the economy is starting to even out, though, we’re likely to see fewer foreclosed homes going to market in 2014. While this is a good sign for future homeowners, it’s not so good for homebuyers. Now is the time to buy discounted foreclosed homes. Are you unsure of where to start? Here are four tips on buying foreclosed real estate in Virginia.
1. Work with Local Realtors
Buying foreclosed homes is not the same as buying from a homeowner. Often, only one real estate agent will be involved. It will be difficult to work without an agent, because there is no seller at the end of the purchase — just a bank. Find a real estate agent who works with banks that have foreclosed homes. Since these homes are often cheaper, they can go quickly, making local Realtors a good resource.
2. Taking a Close Look at the Home’s Condition
Unlike homes sold by owners, real estate foreclosures have usually been abandoned for a period of time. Being an observant buyer is especially important for this type of property. One thing to ask about is whether the home went through the winter season while empty. Without heat, pipes may have cracked, or water leaks may have occurred. This Old House notes that when a house has been left vacant, often, “The plumbing seals dry out, sewer gases back up, and bugs that are in the sewer get a chance to get into the house.”
3. Pay for a New Inspection
We recommend investing in a private, updated inspection of any foreclosed property, especially because of the reasons listed above. Charles Gifford, a Florida home inspector, points out that home inspections can give “a better picture of what you are buying, and provide you with the framework to prioritize your repairs.”
4. Get Pre-Approval from a Mortgage Lender
A normal home sale will usually have wiggle room when it comes to the selling price. This is not true for foreclosed homes — you will be lucky if you manage a deal. One way to sweeten the pot is getting your income and assets verified beforehand by a mortgage lender. Knowing that you’re unlikely to fail payments can give you greater power of negotiation.
Are you interesting in buying foreclosed property? Have you talked to local Realtors yet? Let us know in the comments.
Alternative Titles for RSS Blurb
Take a Close Look at the Condition of Foreclosed Property
Work With Local Realtors: Four Tips for Buying Foreclosed Homes
Four Tips for Buying Foreclosed Virginia Real Estate
Pay for a New Inspection Before Buying Foreclosed Property
Before Buying Foreclosed Property, Get Pre-Approved by a Mortgage Lender
