Let’s face it we all want a bargain. If we could possibly get a house for way less than the market value it sure does attract everyone’s attention. So how do you find these “deals”? How do you protect yourself? Here are some pointers if you decide you want to purchase a foreclosure.
Finding the Properties
Some foreclosure are in the classified section of the newspaper, some are only available through real estate lawyers and some are sold through real estate companies. You need to go through various media to find the deals in your area. These homes are in various condition – mostly though, they are in need of a lot of repair work.
The Viewing
If you are going through a real estate agent, there is usually either an open house when the foreclosure becomes available or by appointment only. If you are going through a lawyer sometimes viewings are available for a specified time or through one open house. You may also find that some foreclosures are done through auction. In this case, you may only have an hour to view before the bidding starts. They will already start with a pre-determined price. Many times you will not get the sale of the century at an auction. There is a specific minimum bid and they can take the house off the table if this minimum bid is not met. Make sure you have at least 10% for a down payment on the spot if you are the winning bid.
You Need to Be Careful
So you found the foreclosure you think you want to buy. The first thing to be aware of is that often these properties are “as is” condition. You may not be allowed to have a house inspector come through and even if you do find anything, no repair work will be done when it is a foreclosure. There are no disclosures and no warranties on the property. If you have a friend who is a contractor or house inspector, you may want them to view it before you purchase. Buyer Beware!
The other side of the coin is to get a bank to issue you a mortgage for a foreclosure. You may not be aware of any flooding or mold issues or bug infestation. You will not know if any illegal activities were done to this property. First time homebuyers should definitely steer clear of these homes as they can be more trouble than they are worth and end up being a money pit. What seemed like a great deal at the time may have you wishing you never bought the property.
On the other hand if you have flipped many homes before and have a good real estate team, lawyer and house inspector – you may want to take the dive.
The Bottom Line
Don’t try to purchase a foreclosure without professional help. The Winch Walton Team has real estate experts that can help you decide if this property is something you wish to undertake. Their many years of real estate experience and professionalism will help you make a decision as to whether this property is for you or not. If you decide you don’t want to go through with a foreclosure, the Winch Walton Team will help you find a property that is suitable for your lifestyle and budget with your needs in mind.
Please contact the Anne Winch Ottawa Real Estate Team today!