What You Should Know Before Buying a Foreclosed Home

When it comes to buying bank-owned properties, there are many pros and cons and several dos and don'ts. Our team of professional Maryland movers can share important things that you need to know before buying a foreclosure.

Our residential movers in Maryland know that a major advantage of buying a foreclosed home is ultimately the price. Foreclosed properties are considered bad assets by the banks or mortgage companies that own the properties, so they need to get rid of these quickly.

Another advantage of buying a bank-owned property is that the homes are often vacant, making the move-in process smoother. Our Maryland movers can simplify the moving process even more. We offer the best moving services in the area and have been a trusted name in moving for more than 30 years!

How Do Foreclosures Work?

Before you go on the hunt for bank-owned properties, it's good to be aware of a few potential disadvantages when buying a foreclosed home. With these properties, sales are usually "as-is." This means there are no warranties and no recourse for problems found after the sales are finalized. It is a good idea to have a property evaluated by experts in home maintenance and repair before making an offer.

All repairs and maintenance are done at the buyer's expense. Remember that when dealing with a financial institution-seller, there will usually be very little room, if any, for negotiating the price or the terms of sale. It's also probable that you will not have much one-on-one attention from the broker or realtor representing the bank. Buying a bank-owned home is a process that can take a lot of time, patience, perseverance, and resilience.

How to Buy a Foreclosed Home

If you are looking into buying real estate owned by a bank (REO), there are things you should do long before you look for local Maryland movers. The first step is to obtain a pre-approval letter from your financial lender indicating the loan amount you are eligible for at that institution. Never wait until you have found the property that you want to buy before getting pre-approved. REO properties are often bought within a few hours of being listed. This gives you little or no time to get pre-approval for the purchase before it has already been sold to another buyer.

The second thing to do is to find a realtor that works exclusively with distressed properties. The chances are that you won't end up buying the first REO property that you see. If you're working with an agent who has access to multiple bank-owned properties, you are more likely to end up with an advantageous purchase.

The third thing to consider when buying a foreclosed home is deciding how much to offer for the property. It's a tricky dance to perform. It's important to know how well the seller has priced the property. If it is priced low, offer a little higher. If the asking price is higher than comparable properties, you can consider offering a lower amount. Remember that by offering a lower price, you risk losing the purchase to a higher-bidding purchaser. A good rule of thumb is always to offer the maximum amount you are willing to pay instead of risking the deal to save a few dollars.

All My Sons Moving & Storage is here to help with any of your moving needs. Whether you are buying a foreclosure or other home, our team can make your move quick and effortless. Contact us today for your free, no-obligation quote.