When you are looking to buy a home, you know you’re generally going to sink in a lot of money into the investment. Many people spend most of their lives paying off their home mortgage. Buying a foreclosed home is a good way to try to lessen the financial burden of purchasing a home. The pros and cons of buying a foreclosed home are about even; it’s up to you to decide if that’s the route you want to take.
Pros Of Buying A Foreclosed Home:
– It’s significantly cheaper. On average, homeowners save about 15 to 20 percent when they buy a foreclosed home instead of a new home. This is because the home is owned by a lender who isn’t using the home, prompting them to lower their prices so they can sell it quickly.
– Foreclosed homes often sell through auctions, which can make the whole process a lot faster. This really helps you avoid the stressful process of slowly securing your new home.
– Buying a foreclosed home often leads to an immediate move-in. In other cases, the previous owner may need to move out of the home completely. With foreclosed homes, the previous owner is usually long gone.
Cons Of Buying A Foreclosed Home:
– Because no one has been living in the home, it has probably not been very well maintained. You need to consider this before you let your money trade hands. Make sure you know what you are getting when you buy a foreclosed home; you’ll probably have to make some repairs such as painting walls or repairing fences.
– Although it’s a huge bargain initially, saving money with a foreclosed home may affect the home value later. Your home’s value is based heavily on previous data, meaning that future buyers may estimate your home’s perceived value based on the price you paid, despite the foreclosure discount.
– Oftentimes, foreclosed homes are surrounded by other foreclosed homes, which may be a sign of a less-than-ideal neighborhood. Make sure that you’re comfortable living where the home is located.
Getting Professional Help
Depending on what’s important to you, buying a foreclosed home might just be the perfect option. If you need to speak with an expert about the process, TalkLocal can connect you with real estate professionals in your area.
Tags: buying house, foreclosed home, real estate
