What are the benefits of buying a foreclosed home?

Ronnie I: What are the benefits of buying a foreclosed home?
I am looking to buy a home in the near future. I have seen a lot of homes foreclosed that are for sale. I don’t know if buying one would be a benefit to me, or what to watch out for? Can someone please advise?

Answers and Views:

Answer by Caitlyn W
the only reall benifits of buying a foreclosed home is the price. the bad things about them are that most of the time they arent in the best condition and sometimes they are fix ups, some homes also have somethings left behind you may have to clean out, and the location may not be the best but some times they are great it really all matters

Answer by Jason S
I’ve just started to do the same thing. Lately I have been looking at home auctions. There is kind of a reward and risk involved depending on your income status with this particular method. Do the research on the homes you are interested in and then be prepared to spend at least $ 5000 to show good faith in an offer you make on a home. Additionally, some auction places let you tour the properties you might like but only on certain dates listed in a brochure that may be in a home up for auction. You can’t miss any advertising for it ,they put up big Auction signs on the actual properties. Good luck.

Answer by Zachary M
I was once in your situation. Don’t worry, everything will work out for you =)

A year ago I found this organization that gives people up to $ 1500 in renter or mortagage assistance! They operate in most US cities, I highly suggest you try to get some of this money.

Good Luck!

Answer by Tamara
The best thing about buying a foreclosed home is the PRICE. You generally will get a deal below market value. Here is some general guidelines

1. Make sure you have pre-approval from a major lender. Most foreclosure listing will need this prior to you making an offer.

2. Be prepared to wait for an answer. Many times, as with short-sales, the banks are slow to make a decision.

3. Get comparables that have sold recently in the immediate neighborhood. Just because it is a foreclosure, doesn’t make it a good price.

4. Once you get acceptance of your offer, be prepared to get all your inspections completed. It is super important to get inspections because the bank will not be able to tell you the history of the home.

5. Work with a reputable Realtor who can walk you through the process. The bank is the one paying the commission – so it wont cost you anything and will save you a lot of headaches.

Even if you are not buying a foreclosure, the things I always tell my clients are – When looking for a home, try to buy a home that has something unique about it – maybe a veiw, or a nice yard, something that when you go to resell the home will make it stand out. Also try to buy a home that is a diamond in the rough – the worst home in a desireable neighborhood is a better buy then the best home in the worst neighborhood. Also, even if you don’t have kids – try to get familiar with the good shcool districts – if you go to sell – this will be important.

Good Luck –