Buying Foreclosures: Deal or No Deal?

Buyers and would-be investors often look toA professional home inspector will review the major,
foreclosure sales to find real estate bargains. Butvisible and accessible components of the home and
newcomers to this market could find someprovide a detailed written report rating each element.
unpleasant surprises if they go in blind. To get theThe report should objectively include information in a
best deal when buying foreclosures, all homes shoulddetailed manner that allows the client to make
be thoroughly inspected by a professional homeinformed decisions. If pre-auction property inspections
inspector before sealing the deal.are not permitted at the foreclosure sale, buyers will
Why inspect if you can't negotiate?need to weigh that risk carefully.
Foreclosure homes are usually "as-is" sales. ThisKnowledge is Power
means that buyers cannot negotiate for the cost ofEven with a significant influx of newly foreclosed
needed repairs, as they may do in a traditional homeproperties due to the sub prime mortgage mess, the
purchase. Buyers must absorb repair costsforeclosure market can be competitive, and it is
themselves and consider this in their purchase offeroften dominated by experienced real estate
at auction. So why get a professional homeinvestors. More than ever, buyers need to know
inspection on a foreclosure property?what they are buying to reduce the possibility of
Too many foreclosure buyers think they're getting amaking a very costly mistake. Armed with the right
deal when, in fact, they might be purchasing ainformation you can make informed bids and find the
property with substantial and costly defects. Thebest home at the best deal. After all, a bargain isn't a
repair of these major issues could exceed thebargain if it costs more than expected down the line.
savings gained in buying a foreclosed property.Remember, buying foreclosed properties can be a
Sellers at foreclosure auctions are not usuallyrisky business, so be certain to consult with needed
obligated to disclose defects. But buyers canprofessionals, including a reputable, certified home
empower themselves by getting a professionalinspector, to address questions about specific issues.
property inspection before the auction that willAs the saying goes, an ounce of prevention is worth
provide valuable insights about the condition of thea pound of cure.
home.