Purchasing a foreclosure is a great way to get a house below market value. While the buying process itself can appear to be complicated, it’s actually not that different from purchasing a normal home. As with any real estate purchase there is always some risk involved.
Here are the steps involved with purchasing a foreclosed home.
You will need to get pre-approved for a mortgage. This will give you your mortgage rates and terms prior to making an offer on a home. This will also show that you are a serious buyer.
Hire Real Estate Agent
If you’re purchasing a foreclosed home for the first time, you will want to consider working with a real estate agent who is experienced in REOs. This will help a great deal with saving you money, time, and frustration.
Find a Good Deal
Whether you’ll be doing so through an auction or through your real estate agent, you will then want to make an offer on a foreclosed home that fits your budget. At the same time, ensure that your budget saves room for expenses such as insurance, home inspections, closing costs, repairs, renovations, and property taxes.
Once you make an offer, you will then need to arrange for a home inspection. If permitted, you can inspect the property yourself prior to making an offer on the foreclosed home. Generally, inspections can cost between $400 and $800, though this depends on the options that you choose. Typically, an inspection on a foreclosed home should include a radon check and termite inspection, as well as a water line and sewer line assessment.
Once all of the logistics have been finalized, any and all repairs and renovations should begin in order to get the home itself up to code. An inspection will reveal the majority of the work that needs to be completed. Once all of the work has been completed, you will then be able to officially move in.
Thank you for visiting the Wayne Murray blog, a Houston real estate market company. If you are looking to buy or sell in the Houston area contact one of our agents today!