When it comes to home buying, you have many options — and these options are not limited to only the different styles of homes. You may be presented with a choice between purchasing a home from a seller or one that has been foreclosed. While every homebuying experience comes with its unique challenges, there are some things you should know before deciding to go through with the process of purchasing a foreclosed home.
What is a Foreclosed Property?
A foreclosed property is one which has been repossessed by the bank because its previous owners were unable to make their loan payments. This can leave a home in an unpredictable state and makes for a buying process that differs from others.
The Benefits to a Foreclosure
The Price May be Right
There are many foreclosed properties that the lenders want to move off the market quickly. You may be able to get a great deal, as they’ll lower the price to make the sale go through. You have the potential to purchase a home for much less than its market value.
The Range of Options
Foreclosed properties range from starter homes to mansion-like estates. It’s likely you’ll be able to bid on a home that would otherwise be out of your price range if it weren’t foreclosed. Foreclosures could open you up to a neighborhood that seemed out of your budget, greater acreage than you expected, as well as homes that never seemed feasible.
Challenges Unique to Foreclosures
The Various States of a Home
Because of the fact a homeowner was unable to make their mortgage payments, it’s likely they weren’t able to keep up with the rest of the home. While the states of foreclosed homes vary, you may have to put work into a home after its purchase.
Greater Buying Competition
As stated above, the better values of certain foreclosed properties attract a great deal of competition. Be prepared to go up against investors who are able to make immediate offers and pay in cash.
A Timeline With Many Variables
The process of purchasing a foreclosed home does not have a typical timeline. If you plan on purchasing a foreclosure, make sure you are up for the challenge. There’s a great deal of paperwork, and the process can feel a lot like the saying “hurry up and wait.”
Be Sure You Have a Trusted Team of Professionals
No matter what kind of home you plan on buying, having a team of trusted professionals makes the entire process that much easier. Contact Cooke Realty Partners in Murfreesboro, TN today, if you’re planning to start the home buying process in Middle Tennessee.