With the economy in its current state, more and more people are interested in purchasing foreclosed homes. Trula.com conducted a survey in December, and found that interest in foreclosures was up from 45 percent to 49 percent. The survey also found that as interest in foreclosed real estate rose, so did the number of people who felt there were disadvantages to buying foreclosed properties. People are worried that the process might involved hidden costs, be too risky, or that the property would continue to lose value.
The riskiest way to purchase a foreclosed home is at auction. Auctions usually won’t give a buyer the chance to inspect their property or find out if they are getting a clear title. Most foreclosures aren’t sold at auction, however, they are sold by licensed real estate brokers.
If you are interested in purchasing a foreclosed property, there are a few things to keep in mind.
Banks do an evaluation of all properties to determine its value, but they still don’t disclose anything on the Real Property Disclosure. That means that they don’t disclose what repairs need to be made on the home. Anyone else selling a home would be forced to, but most states exempt banks from this rule when selling foreclosed properties.
Is it fair? No. Is there anything a buyer can do about it? Usually not. Inspections are vitally important on any home purchase, and doubly so with foreclosures. They do cost money, but could end up saving a buyer thousands of dollars. Before you make your offer, have a contractor check out the property with you so you can get any information you need to determine your offer.
In very rare cases, the bank will pay for some repairs at the buyer’s request. But this is only in cases where there was a health or safety endangering defect in the home, such as a gas leak. What this means for a buyer is that one shouldn’t view a home and expect the bank to fix any obvious problems with the property.
Southwest Florida is “Ground Zero” for the real estate “crisis” in America. But that only means there are more opportunities than ever to purchase a foreclosed property at a greatly reduced rate! If you are thinking of taking advantage of this opportune time to buy, contact Marc or Jesse today. Visit http://www.bonita-estero-realestate.com/ today to begin your search today, and let the Southwest Florida Experts help you find the perfect home at a great price!