Benefits of Buying Foreclosed Homes

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.

Links:

Buying a foreclosure

http://www.ehow.com/how_2228093_buy-foreclosures.html

Property sitting vacant

http://www.ehow.com/list_7606567_checklist-winterizing-foreclosure.html