If you are a first time homebuyer, foreclosed homes for sale are perfect for you. In addition to the huge savings you can get by buying cheap foreclosures, the potential of these properties for huge resale profit and property appreciation makes them excellent investment opportunities. In addition, you can also choose from a wide selection of foreclosed properties that are available on the market today. Contrary to popular belief that most of these houses are run-down properties, many of them are in very good condition and located in prime areas and upscale neighborhoods. If you want value for money, here are a few options you can choose from.
FSBO Properties
FSBO properties are those that are “For Sale By Owners” without the help of any real estate agent or broker. Many homeowners who would like to avoid the hefty commission and professional fees of an agent choose to sell their homes privately and directly to buyers. This makes it easier to negotiate with the property owner, as they have more room to give you a larger and more substantial discount.
Additionally, FSBO homes can be more affordable than other types of foreclosures in terms of conducting personal inspections of the property, as most homeowners want a quick and easy transaction and therefore would be more accommodating of any request. of Inspection. This can be helpful, especially if it’s your first time buying a home and you want to be sure that what you’re buying is a well-maintained property or one that doesn’t require major repairs or expensive renovations.
Bank owned properties
Bank properties, also known as REO properties, are said to be the safest to buy among the many foreclosed homes for sale on the market. This is because REO properties come with good, clean titles, which means the bank has already paid off any outstanding debt, mortgage, or judgment on the property. Once you buy an REO property, the bank can give you a lien-free title.
However, when it comes to REO properties, you should know that a pre-approval letter from a reputable lender can always work in your favor. In general, banks are more inclined to award properties to those they believe are capable of paying the required monthly mortgage. This really shouldn’t be a problem for you if you are confident in your credit history and have no outstanding bad debts that you haven’t paid off.
Foreclosures at Auctions
Auction foreclosures refer to those that you can bid on at auction. When a bank repossesses a property, it tries to sell it at auction. Only when the auction fails does it return to the bank as an REO property. Otherwise, it is sold to the highest or winning bidder.
Auction foreclosures are actually great places to find bargains and bargains. But make sure you come well prepared and have researched the properties that interest you. Bidding on an auction can be very fast and you could be overwhelmed by the whole process if you are not prepared for it. If you need help buying foreclosed homes for sale at auction, you can always enlist the help of an agent.
