Buying a foreclosed house can be a great way to save money.
However, achieving those savings takes a lot of preparation, and willingness to do some extra work.
Here are 5 tips for buying a foreclosure:
Be financially prepared
- This means being debt-free, with savings to cover six months of expenses and maximized contributions to retirement plans.
Get pre-approved for financing
- This is critical unless you're going to pay cash.
- The reason for this is that the best foreclosure properties move very quickly; you won't have time to arrange financing after making an offer
Find the foreclosure listings
- You'll see ads and websites that list them, along with auction dates.
- If there's a property you like, call immediately for details and arrange a viewing. - Avoid the foreclosures that aren't available for viewings, you'll have no idea what you're getting into.
Scrutinize before buying.
- Remember, foreclosures are sold as is and some of them can be in really bad shape, so it's important to take a carpenter or home inspector with you for viewing.
- You need to know how much upgrading is required before deciding what price you're willing to pay.
- You also need to study comparable values of homes in the area. In general, a foreclosure is usually judged to be a good deal if you can get it for 80% of the market value.
If you're interested in exploring the potential of foreclosures, we'd be happy to help. Please call us for more information.
For Vancouver Mortgage Broker related inquiries ~ 604 628 5040.
For Vancouver Luxury Realtor related inquiries ~ 604 566 8968.
Jessi Johnson Vancouver Mortgage Broker Vancouver Luxury Realtor