We all know buyers are looking for bargains and one of their main sources are foreclosures. Despite the low price buyers can get foreclosures for they should be aware that foreclosures can also come with risk, some more than others. Many times when homebuyers purchase foreclosures they find that there are many more repairs needed than they bargained for and almost always foreclosures are sold "as-is".
More often than not, foreclosed homes have been sitting vacant for long periods of time and as a result they can be inundated with many maintenance issues.
When buyers are considering a purchase of a foreclosed home there are 4 questions they should ask which will allow them to get a better idea on the condition of the home.
The first question they should ask is, "How old is the home?" The reason why buyers should ask this question is that usually homes that are more than 50 years old may have a bad plumbing system, inadequate electrical wiring since electrical codes today are more stringent than years past and lastly the roof may be hiding problems as well.
The second question should be, "How long has the home been sitting vacant since the foreclosure?" Foreclosed homes that have been vacant for more than a few weeks will most likely have had their utilities shut off. The reason this is an important question is that homes can and will deteriorate more quickly when the cooling, heating, electricity, and the water have been turned off for a long period of time.
The third question buyers of foreclosed homes should ask is, "What is the condition of the home?" If obvious issues are seen on the outside of the home you can almost be guaranteed that there are even more issues inside. Buyers should look for broken or damaged rain gutters, broken windows, roof tiles that are loose or missing as well as damaged siding. These will be good indicators of how well the home was cared for.
And lastly, the final question buyers should ask is, "What items are missing on the inside?" Often former owners will have removed valuable items from the home when they leave including, floor tiles, water heaters, built-in lighting fixtures and even air-conditioning units! These items can be quite costly to repair or replace and should be considered when buying a foreclosed home.
Buyers are encouraged to be informed buyers and should hire a home inspector to look over the property that they are considering. Homebuyers need to know what repairs are needed and to find out what it will cost to fix these issues because it's better to find out the facts before it's too late. Remember the old saying, "You can pay now or pay later."
Yes, you can find great values when it comes to foreclosures, but, remember, foreclosures are discounted for a reason. You just need to find out why.