Whether you're looking for an investment property or a home for your family, a foreclosure might be a good deal for you. However, buying a foreclosure is different from buying a home from a seller and requires different considerations.
Before you sign a contract, consider what you should and should not do when buying a St Louis home or condo in foreclosure.
•· DO consider the cost of repairs. Foreclosures are sold "as is." That means the bank will not make any repairs to the [city] home in foreclosure before closing, so you will be responsible for them. For example, if the home needs a new roof, make sure you have enough money to pay for it.
•· DO get a home inspection. In a traditional home sale, the seller is required to tell you about any defects or problems they've had with the home. However, a bank does not have to supply a disclosure statement because they have not lived in the house and do not have any information about defects. Make sure you hire a professional home inspector to check the structural integrity and condition of the home.
•· DO be prepared to wait. Buying a foreclosure usually takes longer than buying through a traditional sale. You will have to look through and sign stacks of paperwork. In some states, banks are required to go through the court system to sell a foreclosure which can take time.
•· DON'T buy a home just because the price is low. Banks like to sell their foreclosures as close to market value as possible. If the price is exceptionally low, there's a reason why. Make sure you know it. Home repairs can easily add up, turning what you thought was a bargain into a money trap.
•· DON'T expect to flip the home for a quick profit. Despite what the get-rich-quick-buying-foreclosures crowd tells you, foreclosures don't automatically mean you're getting a steal, nor can you always quickly sell them. Buy a foreclosure because it's an affordable home for you and your family, not as a way to build an overnight fortune.
When you take your time and do your homework, buying a St Louis home in foreclosure can be a great bargain. I can help you find well-priced foreclosures. Call me today at 314-630-4227 or email me at email@example.com
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