Many buyers think they are getting a great deal on a foreclosure property.
Some of them are good deals, but I think the great deals in our area are gone for the most part.
What buyers don't know about buying a foreclosure is varied, and depending on their agent, and the listing agent, it might be a great experience or maybe not so much.
Some of the differences in buying a foreclosure vs. an standard owner property include:
- There may not be utilities on for inspections.
- The seller may not permit utilities to be on for inspections.
- There are no seller disclosures on foreclosed properties.
- The bank selling the foreclosed property will move at their own pace.
I don't shy away from foreclosures, as many first time buyers or buyers re-entering the market can solely afford these price points.
I do point out the potential issues I see (a lot of moisture damage, an aged roof), and do enough research to protect the party I represent (typically the buyer).
Another nuance to dealing with a foreclosure is the bank selling the property does not release keys until the selling bank receives an original of all docs signed at closing, and the funds have been received. In the case of my buyer who signed yesterday, we are still waiting for the bank ok to release the keys, almost 24 hours after the buyer signed.
If you are looking to buy a foreclosure in your area, make sure you employ an agent who has been down the REO road before, and save yourself some heartache.
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