The one benefit you can receive from buying a foreclosed home is the price, and this is what attracts people to these homes. Depending on your area, you might be able to purchase a foreclosure for 18% to 59% less than a regular home. This seems like a great deal, right? Well, there are times it can be; however, there are also times when it is better to just stick with buying a regular house through a real estate agent. This is primarily because foreclosed homes may have the following hidden problems.
They are often full of junk
When a person's home forecloses, he or she might be in a rush to get out and will leave a lot of stuff in the house. If you buy a home like this, you will have to spend money on junk removal services. You will need a dumpster for the stuff and manpower to clear out the home. In addition, you might discover that the family actually removed things from the home that should have been left. This can include light fixtures, appliances, furnaces, and even copper plumbing pipes.
They may have major problems
When a house needs repairs, the repairs will cost money. Some types of home repairs are cheap, but there are others that are extremely expensive. Water damage repair is an example of an expensive repair you may encounter with a foreclosed home. If you do not know the house has this issue, you will be quite shocked when you get a quote to fix all the damage.
You could discover a variety of different major issues with a foreclosed home. This includes plumbing issues, electrical problems, and structural issues. In addition, a foreclosed home might have title issues. If you are not in a rush to make an offer on a foreclosed home, you should perform a title inspection to find out if there are issues with the home's title.
You may not know about these things until after you purchase the house, simply because it's very common for banks to not allow people to walk through these homes. In other words, you will most likely have to buy the property sight unseen. While the house may look nice from the outside, there might be a lot of problems lingering inside.
If you do not want to face unknown issues like these, buying a house that is for sale on the real estate market might be a better way to go. To learn more, contact a real estate agent in your area today.