Beware the Foreclosure: What to Look For When Buying a Foreclosed Home
Despite mildly increasing foreclosure activity in October, California has been sitting at a nice foreclosure level, lower than even the levels before the housing crisis shook the country. While this is great news in that less people are losing their homes to the banks and government, it may also be the sign you need to get started on your hunt for a foreclosed home while there are still some on the market. If you’ve been searching Brentwood, CA foreclosures in hopes of finding your dream home, take these few steps to make sure you’re at the top of your game.
- Get Pre-Qualified Before Anything – Put yourself in the shoes of the seller; if you have multiple offers, why wait around for a potential buyer that may not get the financing they need when there’s one with proof that they can afford the house right in front of you? Buying a foreclosed home can be a pretty competitive process, so try to get your ducks in a row before you begin the house hunt. The person selling will appreciate it and you won’t be getting your hopes up for something that may be way out of your range. Besides, though you can’t get a house for more than you’re approved for, you can get it for less. And why spend more money than you really have to?
- Get Ready for a Fixer-Upper – What you’re saving in money by buying a house at low prices is what you’ll probably end up spending getting the house fully repaired and ready to live in. If the homes were repossessed or haven’t been lived in there’s generally a fair amount of damage done them so don’t expect to buy the house as-is and settle in comfortably. You’ll probably have to do some work, and that requires extra money. Try setting up a savings for those repairs that don’t need to be made before moving in but you’d like to see happen in the near future. And make sure you’re accounting for all of your expenses when buying a house, whether new or not.
- Stick With a Real Estate Agent – It can be tempting to want to take on the house hunting project yourself and save whatever money you can. But you aren’t going to find the same foreclosures while surfing the web that your real estate agent will be able to find for you. It’s worth the money to hear about a foreclosure before anyone else so you can be the first to get started with the sellers. A real estate agent will also be able to point you in the right direction if there’s something that just isn’t sitting right with you while looking at homes. If you’re new to the area, let them be your tour guide and show you where the best foreclosures are.
A real estate agent is your best bet when searching for a foreclosed home. Brentwood, CA foreclosures are certainly there to be found if you’re willing to look hard enough!