Mistakes to Avoid When Buying a Foreclosure

Over the last several years I have worked with Buyers that are interested in Bank Owned, Short Sales and Foreclosures. When dealing with investors that their intent is not to live in the home but fix it up and flip it things go smoothly in most cases. However when it comes to the home Buyer that plans on making the Bank Owned property their residence other factors come into play.

 As Foreclosures continue to flood real estate markets across the country, and buyers need to be cautious before jumping in to make sure they really are getting a bargain. This is when a professional real estate broker can help. There are several factors to consider before you even start looking.

The first and most important thing even if you plan on living in the home is do not get emotional about the property. Looking at and buying distressed properties is not the same as looking at current properties that are for sale.

Do not judge a house by its cover.  A fixer upper means exactly that! I have seen Asheville Homes completely gutted from the foreclosed owners.  I always suggest a home inspection prior to purchasing a property can help buyers determine if they might be getting in over their head also a survey of the property can be very important. Homes that have been vacant for some time can deteriorate quickly. The question you need answered are the bones of the house in good condition.

Location, location in real estate has never change and this holds true with distressed homes. School district, views and crime rate may also be a strong factor not just the price.

Most investors that plan on flipping distressed properties will put little money into it and know the right things to fix before placing it back on the market. Unless you have experience flipping homes be careful not to invest too much money or you may have your investment on the market for a long time.

Distressed properties can be an excellent investment but knowing the ones to invest in you will need facts and a good real estate broker.