If you're looking to buy, one of the options you might consider is a foreclosure. Buying a home that has been foreclosed upon has its advantages, but it can also be risky – especially if you don't have any experience with the process.
Foreclosures happen every day, all over the country. Similarly, foreclosure sales also happen with frequency. The reason for this is that you will often find the best prices in this particular market. Your real estate agent will prove invaluable in providing you with a vast amount of knowledge about this process, but to get you started, here are some tips on what you need to do if you want to purchase a foreclosed home:
- Firstly, shop around just like you would for any other home. The most common source for finding foreclosed homes is going to be the MLS, or Multiple Listing Service, which is simply a collection of all the available homes put together by local real estate agents. These agents are going to have full access to the MLS, so they will be able to give you an enormous amount of help in finding a home that perfectly conforms to your specifications.
- Next, once you've found a suitable home to make an offer on, do just that. This is another point where your real estate agent is going to be invaluable to you, as he or she will be able to provide you with the right guidance toward making an acceptable offer.
Occasionally, and especially when there are many offers on a foreclosed property, the seller will ask you to make your "highest and best" offer. This makes it easy for you to accidently overpay, so be sure you don't fall victim to the hype, and make an offer that you think is best and that your agent agrees with.
From this point out, purchasing a foreclosed home is just like the process of purchasing any other. You'll want to hire inspectors to come out and look at the property (this is especially important with a foreclosed home, because it could have been sitting unoccupied for a long period of time before it was finally bought) and get all of your finances in order. With luck, the rest of the transaction will go off smoothly, and you'll be the proud owner of a previously-foreclosed home.