What you should know about Foreclosures
Buying a Foreclosure property is not for the faint of heart and not recommended for first time home buyers. There are many drawbacks you need to be aware of.
Often times, buyers at foreclosure auctions don’t get the opportunity to inspect the property that they are bidding on. You wont know the condition of the property or if there are major defects.
The buyer might need to evict the occupants who can be the previous owners, a tenant or squatters. This will require the services of an attorney experienced in evicting people.
Occupants rarely leave peacefully and frequently cause as much damage as possible before they are forced to move.
When buying a foreclosure property at auction you generally need an all cash payment or sizeable deposit which can easily deplete your cash on hand needed for repairs or other costs.
If you haven’t purchased a foreclosure before, or are inexperienced, you’ll need to be aware that you are bidding against seasoned professionals who have some advantage over you. It could be advanced knowledge of the property and its current state or simply a stronger financial position which allows them to out-bid others, even if they take an initial loss after purchase.
The upside of buying a foreclosure property is that it is possible to acquire a nice home at a less than market price. Sometimes you can acquire a property that only needs minor cosmetic upgrades in order to turn a profit on sale later (ask us for information on flipping).
There is a better way of buying a foreclosure property and that is to have an agent present an offer directly to the owner before foreclosure takes place. At Team Results, we closely monitor foreclosure and pre-foreclosure activity in Long Beach and surrounding communities in order to do just that.
Homes go into foreclosure for many reasons but, frequently its because of an unforeseen problem like loss of job, divorce, medical emergency, etc. and, the owner can no longer afford their monthly housing payment. These are owners that are in distress and often can’t think clearly or try to ignore the problems they’re facing. An experienced agent knows how to consult these types with sincerity and compassion, while delicately offering solutions that solve their problem by alleviating their financial burden and getting you into ownership by paying less and avoiding the pitfalls of buying at foreclosure auction.
Team Results will work with you to create a buying strategy that puts you into homeownership and saves you money. Just call on us, we’ll be happy to give you all the information you need before you make your buying decision.