4 Things To Know About Buying A Foreclosure

You've decided to buy a house, but now it's time to ask yourself an important question: do you want to buy a foreclosure, or do you not? Buying a foreclosure at the Lake of the Ozarks can be a great way to save money on your home purchase, but there are several associated factors that deserve careful consideration. Devine & Associates Real Estate is here to help you make a smart, educated decision about your foreclosure purchase. Here are a couple things to keep in mind before buying a foreclosure.

1. You Should Always See A Foreclosure Property Before You Buy It

This guidelines applies to all properties, but it is especially true for foreclosed homes. A foreclosed home will generally require lots of work after you move in in order to make it "livable," so you should make sure you know exactly what you're getting yourself into. Don't be afraid to look at the home several times; it sometimes takes several passes through a single property before you can start to notice some of the little details.

2. Foreclosure Properties Typically Require More Expensive Repairs

Wanting to make repairs and/or upgrades to your brand new house in Laurie, MO is natural, but keep in mind that a foreclosure property may require especially expensive repairs. In order for a property to be foreclosed upon, the previous owners must have failed to make their mortgage payments for an extended amount of time. Most homeowners who can't make their mortgage payments also cannot afford to make the necessary repairs to maintain their properties, so these homes may require more work after you move in.

3. You Should Research The Sale Prices Of Comparable Properties

The process of buying a foreclosure can be very similar to the process of buying any other home; you may be able to negotiate the sale price. Before submitting your offer, ask your Lake of the Ozarks real estate agent to help you gather information about comparable homes (or "comps"). Be sure to pay close attention to these properties' locations, features, and overall conditions. If they are similar to the foreclosure property you intend to purchase, you can use their sale prices as guidelines for submitting your offer.

4. Foreclosed Homes May Appraise For Lower Amounts

Homes require consistent attention and maintenance in order to stay in good condition. Because the previous owners of foreclosure properties may have trouble tending to the necessary repairs, the value of these properties may drop. The fact that foreclosure properties often sit vacant for several months is another contributing factor. You may be able to make the necessary repairs or upgrades to bring the home's market value back up before you choose to sell it, but the low initial appraisal amount may make it difficult for you to get a large mortgage loan.

Thinking About Buying A Foreclosure? We May Be Able To Help!

If you are considering purchasing a foreclosure property, contact one of our experienced real estate agents in Eldon, Missouri. Our team members have the knowledge and the skills required to help you carefully navigate the process to help ensure a successful outcome. Contact Devine & Associates Real Estate to get started!


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Devine & Associates Real Estate
(573) 392-9900

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