Anyone in the market for real estate is looking for a good deal. It can take a trained eye to spot a diamond in the rough, but the payoff is extra sweet. The good news is that you don’t need years of real estate experience to grab that game-changing home. What you do need, however, is a little bit of patience, and a trained eye for finding deals.
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Consider a foreclosed home
Foreclosures come with a more challenging buying process, but they’re definitely worthwhile. If you’re not familiar with the term, a foreclosure is when the bank or mortgage lender takes possession of a home when the homeowner defaults on their mortgage. Once this happens, typically the home will be put up for auction by the lender.
Although not always in their prettiest state, foreclosure homes are typically auctioned off below market value. And since it’s an auction, the price you pay for the home ultimately depends on the other bidders and how deep their pockets are. If your bid is low but so is the turnout, you could walk away with quality realty for a steal of a deal.
Arrive at the auction prepared
Buying a home in foreclosure comes with its downsides, one of those being the auction itself. In most cases, live local auctions are very rare (unless it’s a tax sale), but there are often online auction events. Either way, buyers need to be aware that there is usually a buyer’s premium. Typically 5% over the purchase price and working with a realtor to represent you through the bid or offer process is ideal for these types of online real estate auctions.
I recommend deciding the maximum amount you’re willing to pay before you enter the auction. Doing so will equip you to walk away when the purchase price is no longer a good deal for you. Some homes in foreclosure can be in poor condition and are sold as-is. Get ready to put in some elbow grease if you’re the lucky winning bid!
Another thing to consider is to secure your finances before bidding. Winning the auction is contingent on having a deposit, and it could be larger than what you’re used to. Get the facts beforehand so you’re not disappointed.
Assess the home’s quality
Does the listing warn that the home is in poor condition? Are there any red flags? What is the location like? Answer as many questions as you can and assess what the value of the home would be in an ideal condition. You should attend every auction expecting it to draw a crowd of potential hopeful homeowners, so put in the work to assess what the home is really worth.
If you’re in Durant, look for these common attributes of quality realty:
● Extra bedrooms
● More than one bathroom
● Central location
● Large outdoor living space
Commit to the extra time
Buying a home in foreclosure is not as easy as buying a home through a real estate agent. Most buyers don’t win an auction on their first try, and it can take some time to find the listings, assess the properties, and attend the auctions. After the sale, it could still take some patience to get the home up to your personal standards.
If you do decide to take this alternate route to home ownership, you can find yourself with quality realty for less. If you’re looking to assess your financial ability to buy a home in Durant, OK, let’s set up a time to chat. Click here to book a time in my calendar.
Brian A. Allen is a new Realtor and is full of energy, excitement and zeal for every sale. He spent most of his career in marketing and now applies that skill set to the homes his clients want to sell. Click here to learn more about Brian A. Allen