Benefits of Buying Foreclosed HomesPosted Monday, June 17, 2013
You’ve heard that buying a foreclosed home is a good idea. But you’re not sure why. Below are two benefits of buying foreclosed homes:
- Foreclosures are typically priced below their true market value. How much money can you save by buying foreclosed homes? Most sources say 5 to 15 percent is the average amount saved by buying a foreclosure.
- You can afford to get a larger or more luxurious home. Because the price is lower than the true market value, you can usually buy a larger foreclosed home for the same price as a smaller home that isn’t going through foreclosure.
There are also risks involved when buying a foreclosure. Before deciding to buy a foreclosure, ask yourself these questions:
- How much experience do you have purchasing a home, especially a foreclosed home? If you don’t have extensive experience, hire a professional real estate agent who specializes in foreclosures.
- What is your financial situation? Foreclosures can surprise you with unexpected expenses. Repairs may be needed due to the property sitting vacant for a long period of time. Be sure you have enough money for the down payment, closing costs, mortgage payments, repairs and other unexpected expenses.
Buying a foreclosure
Property sitting vacant