Top Tips for Buying Foreclosures and Distressed Properties
Does the idea of getting a property for a fraction of what it’s worth make your mouth water? If so, you’re probably ready to dive into the wild world of foreclosures and distressed properties. You might think it’s easy to grab a great deal on one of these homes, but in reality, it’s best to be ready for a bit of a bumpy ride. Here are the top tips for getting a fantastic deal and surviving the foreclosure buying process.
How do you find foreclosures for sale?
A distressed property is defined as any property that is in default of it’s mortgage. If you are looking for one for sale, you’re probably going to find a great deal. Where can you find these properties in your area? First, partner up with a reputable realtor who knows the Southwest Florida real estate market inside and out, and has experience with distress sales. This will put you ahead of the crowd right off the bat.
Things to remember when buying distressed property.
As is means as is.
Don’t expect things to be perfect. In a traditional home sale, you can get a home inspected and then negotiate the price based on problems that are found. This isn’t the case in home foreclosures. You are agreeing to buy the home in whatever condition you find it in. Expect to put some elbow grease in after the sale goes through in order to make the home livable.
Make sure you are pre-approved.
Going through the pre-approval process means you’ll be ready to bid when you find the right property. You’ll be going up against investors and experienced property flippers in the bidding. Being totally prepared puts you on an even playing field.
Buy in a great neighborhood.
If you find short sales or foreclosures in a sought-after neighborhood, you’re going to have a deal that’s worthwhile. However, don’t be tempted to buy a distressed property that’s also in a depressed neighborhood. Look for signs like many houses on the block being foreclosures, or many homes being vacant. Avoid buying distressed homes in these areas.
Have cash on hand.
If you’re looking to score a great deal at a foreclosure auction, plan to have the full amount you plan to bid available in cash. Even if it is not an auction, a bank is going to look very favorably on you if you have the cash in hand to buy the house.
Get the house inspected.
Although you can’t negotiate the price based on problems with the home, having a home inspection can help you decide whether you want to take on whatever issues are found or not. Can you afford to make the repairs that will be necessary? It is better to know of all the problems beforehand so you can make an educated decision.
Buying a foreclosed home can take a lot more time than a traditional house sale. If you are in a hurry to move in, buying a distressed property might not be the right move for you. You may find yourself waiting months for an answer from the bank or mortgage company. However, if you are willing to be patient and wait out the process, you could be in for the deal of a lifetime.
Get in touch with our experienced agents to help you negotiate the best deal and buy distressed property in gorgeous Southwest Florida. Your dream home may just be a distressed property out there waiting for some TLC from you. Contact us for a full listing of foreclosures and distress sales in the Tampa area.