Top Five Do’s When Buying a Foreclosed Home

There are various factors that can lead you to decide that this is the perfect time to buy a new home. You may feel that it’s time to move out of your parent’s house, or that you will soon get married, or maybe you and your family are ready to move in to a better home. And just like any huge decision that you have to make, it is important that you weigh out all your options and avoid committing mistakes to make sure that you get to buy the home of your dreams.

Today’s real estate situation, with thousands of foreclosed homes in Canada, can be very advantageous for both the buyers and the sellers. Observe the “do’s” and steer away from the “don’ts” if you are seriously considering buying a foreclosed home as an option; especially if you are buying a property for the first time.

Do: Explore Your Options

One thing that could affect the outcome of your purchase is choosing the right set up or options for you and your family. You have to take a look at the condition of the home (its price or rate) and you should also consider the bank, broker or real estate firm that handles the sale of the house or houses on your list. You wouldn’t want to regret your decisions because you jumped into buying that house without reviewing everything about it.

Do: Select The Right Location

Location is an important factor in buying properties, more so if you plan to buy a foreclosed home or property. Since every state has its own rate of foreclosures, you may want to check the nation-wide foreclosure listings and look for states with high foreclosure rates. Why? It’s because these places would have the lowest and the most affordable home rates in the country. Another thing, choosing a good location would also help you maintain a good resell value in case you would like to put it up for sale after a few years. So aside from high foreclosure rates and budget-friendly prices, also look for a home that’s closer to your kids’ potential schools or maybe your new work place.

Do: Inspect The House You Want To Buy and Don’t Handle All the Repairs Yourself

It is natural to get excited to close the deal when buying an affordable foreclosed home. But do not let your excitement get in the way of making sure that what you are buying is worth your money. So before you sign that contract and post your first payment, be meticulous and inspect every nook and cranny of the house that you intend to purchase. After all, you wouldn’t want to be trapped in your sleep when the ceiling all of a sudden caves in. So do the right thing and bring in an expert carpenter to check the quality of the house’s foundation. By the way, do not attempt to save more money by doing all the repairs on your own. You can negotiate with the sellers, and check the possibility of doing the necessary repairs on the house for you.

Do: Follow the Rules of Foreclosure and Don’t Create Your Own Set of Rules

Every state has its own foreclosure rules or policies, so it’s best to consult your real estate agent or any real estate professional when it comes to the state-specific laws on buying foreclosures. Never ignore the permits that you need to secure; otherwise, you will lose the house that you are so eager to buy.

Do: Create a Fool Proof Plan and Do Not Act Haphazardly

Set a plan in motion. That is important when it comes to buying a home… or any property for that matter. Start with setting a budget – for repairs, for permits, for the relocation and of course for the actual purchase of the house. Create a contingency plan, and never decide on things haphazardly.

With the increase in foreclosure rates, comes great opportunities to buy that house that you and your family has been planning to do. Just make sure that you do everything right and in no time, you will be lounging on the couch, inside your newly purchased home.

To read more about buying foreclosed homes please visit:
Foreclosure Listings Canada