Buying Foreclosures: Deal or No Deal?

Buyers and would-be investors often look toA professional home inspector will review the major,
foreclosure sales to find real estate bargains. Butvisible and accessible components of the home and
newcomers to this market could find some unpleasantprovide a detailed written report rating each element.
surprises if they go in blind. To get the best deal whenThe report should objectively include information in a
buying foreclosures, all homes should be thoroughlydetailed manner that allows the client to make
inspected by a professional home inspector beforeinformed decisions. If pre-auction property inspections
sealing the deal.are not permitted at the foreclosure sale, buyers will
Why inspect if you can’t negotiate?need to weigh that risk carefully.
Foreclosure homes are usually “as-is” sales. ThisKnowledge is Power
means that buyers cannot negotiate for the cost ofEven with a significant influx of newly foreclosed
needed repairs, as they may do in a traditional homeproperties due to the sub prime mortgage mess, the
purchase. Buyers must absorb repair costsforeclosure market can be competitive, and it is often
themselves and consider this in their purchase offer atdominated by experienced real estate investors. More
auction. So why get a professional home inspection onthan ever, buyers need to know what they are buying
a foreclosure property?to reduce the possibility of making a very costly
Too many foreclosure buyers think they’re gettingmistake. Armed with the right information you can
a deal when, in fact, they might be purchasing amake informed bids and find the best home at the
property with substantial and costly defects. The repairbest deal. After all, a bargain isn’t a bargain if it
of these major issues could exceed the savingscosts more than expected down the line.
gained in buying a foreclosed property.Remember, buying foreclosed properties can be a
Sellers at foreclosure auctions are not usually obligatedrisky business, so be certain to consult with needed
to disclose defects. But buyers can empowerprofessionals, including a reputable, certified home
themselves by getting a professional propertyinspector, to address questions about specific issues.
inspection before the auction that will provide valuableAs the saying goes, an ounce of prevention is worth a
insights about the condition of the home.pound of cure.