Luxury Home Foreclosures
Foreclosure homes present buyers with amazing opportunities for purchase properties that they wouldn’t otherwise be able to afford, and none more so than luxury homes foreclosures. Homes that would ordinarily be out of reach for the average person can be bought at a fraction of the listing price, but beware the pitfalls that could turn a potentially sweet deal sour. When dealing with foreclosure homes, particularly luxury homes, the deals tend to be a bit more complicated than an ordinary real estate transaction, but there are some tips that can help smooth the way.
Hire a real estate agent who has experience in distressed properties. Working with a reputable agent who is knowledgeable in this area is one of the best things that a potential buyer can do. Interview two or three prospects and inquire about their history in dealing with foreclosure sales.
Do some research of your own. Search around and find out what similar properties are selling for in order to determine whether or not you are really getting a bargain price. Real estate agents can also help by providing reports that allow you to view comparable home sales for the previous year or two. If you want to start your research before you contact an agent, searching real estate sites online can give you a good idea of pricing.
Patience is a virtue that you will need in plenty. When dealing with luxury homes foreclosures, be prepared for a lengthy waiting time. It takes time for the offer to be accepted (sometimes months), as well as to sort out the various entanglements that the previous owners may have left. Things such as unpaid loans or other debts that the previous owners have can delay things even further.
Get A Home Inspection. Before you purchase any home, an inspection is wise (if not required by the bank). Don’t assume that just because a house is high priced that it has been well cared for. Go through the home with a home inspector or a knowledgeable contractor and make a list of any repairs that will need done and how much they will cost. This will give you a better idea of whether or not it is worth even a bargain price.
Have your Financing in Order. Getting financing for any foreclosure can be difficult, but luxury homes foreclosurescan be even trickier. If you don’t have your financing planned ahead, it could take months for the approval to come through. While you can view other homes during this time, another buyer could come in and buy the home during the interim.
There are many things that make purchasing a luxury foreclosure home different than your run of the mill real estate deal, but the bargain may make it well worth the effort. Competition is stiff for these properties and many investors will work out a deal with the banks before the foreclosure is even final. Knowing what you want and how to get it, along with having everything in order ahead of time can help to ensure that you get the home that you want at the price that you want.