Tips for Buying a Foreclosure

Through recent times the housing market has seen its fair share of fluctuation. There has been a rise in the number of foreclosed homes. This has created an opportunity to buy a house at a fraction of its value. But there are many factors to consider. Here is a list of tips for buying a foreclosure. They will serve to both protect your interests and get you a great house for a reasonable price.

What You Should Know

tips for buying a foreclosure

  • The Neighborhood 
    Go for a little drive through the streets of the neighborhoods. Also, try to do it at different times of the day. Whether you are planning on living there or buying the house an investment, you need to make sure the area is desirable.
  • Time of Vacancy 
    The longer a house sits unoccupied, the more problems you will encounter. In addition, the plumbing seals can dry out, sewer gasses back up, and bugs in the sewer have an opportunity to get into the house.

Before You Put an Offer

  • See the House First Hand 
    It is in your best interest to visit the property for yourself. You want to ensure there are no hidden issues. If you are considering investing across state lines, if you cannot view the house, have someone you trust evaluate it for you. Also, make sure to view the landscaping. Make sure trees cannot potentially or can damage the roof, or roots affect the plumbing or foundation. Be aware, sometimes vines creep up walls and ruin siding and stucco.
  • Was the House Winterized?
    In the Chesapeake Area, we experience a vast fluctuation in weather from humid summers to chilly winters. If the property has not been attended to, do not turn on the utilities until you have the plumbing and HVAC systems inspected. There may be mold in the ventilation system or cracks in the pipes lurking that could be a potential for disaster.
  • Contract a Private Inspection 
    One of the most important tips for buying a foreclosure. Getting an up-to-date inspection is crucial. Never rely on previous reports, for the longer a property sits vacant the conditions change drastically. No matter the neighborhood, empty homes experience vandalism and theft. Having your own inspector review the property will help to prevent problems from unseen issues. The cost of the inspection is minimal compared to finding an unreported problem after purchase.

Finally, we recommend patience. If you are purchasing as an investment, do not expect a quick profit. The process takes time. Also, never expect to put in a little effort for a huge profit. Do your due diligence, and you will see that concerted efforts always pay off. Hopefully, these tips for buying a foreclosure have helped.

If you need assistance please contact J.J. Fegan today for an appointment. 

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2 Comments
  1. I like what this article recommends about conducting a private inspection as well as learning of the maintenance history. It makes sense that if a house is foreclosed, maintenance done to the house might have been less than what was necessary. It’s something to remember when buying any house because it could really give you an idea of the value.

  2. This is some really good information about foreclosure. It does seem like a good idea to have a professional help you buy a home like that. After all, there is a lot of legal issues that go with that.

J.J. FEGAN

RE/MAX LEADING EDGE
303 EDGEWATER DR.
EDGEWATER, MD 21037
Cell: (410) 353-0956
Office: (410) 956-3500

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