As foreclosures increase around the country, an opportunity arises for home buyers willing to take a chance.
Foreclosed home are typically sold auction-style and are awarded to the highest bidder.
This is a different situation from the usual real estate transaction, and requires a lot of homework in order to avoid over-paying.
Foreclosures are a terrific way to find a “fixer-upper”, but don’t expect to get a steal.
Houses sold in foreclosure are not a “secret”. At any given auction, there are hosts of “professional buyers” in addition to investors and contractors in the crowd.
If you are a novice, these folks will have much more experience than you in buying foreclosed properties and that can put you at a disadvantage.
If you bid and are awarded a home, however, remember that foreclosed homes are sold as-is. If the home has strange quirks and or has hidden issues, that’s too bad for the buyer.
Foreclosed homes are sold without warranties or guarantees an a buyer must be prepared for the worst.
There are plenty of good values at foreclosure auctions, but it may sometimes be less expensive to buy a home the “traditional way”. At least in that scenario, there is room for negotiation with the seller.
