Foreclosed properties often sell for thousands of dollars less than similar homes, making them an attractive option for house hunters looking for a bargain. However, these properties also come with more risk than occupied homes, so consulting a real estate attorney and exercising due diligence is essential to protecting your interests. Below are a few aspects of the process to keep in mind if you’re considering purchasing a foreclosure.

What You Should Know About Buying a Foreclosure

1. Foreclosures Are Sold “As-Is”

Unlike private sellers, banks typically will not invest in repairs or improvements at the request of potential buyers. Because you’ll be responsible for any necessary repairs after closing, invest in a thorough home inspection before closing, and factor in the cost of repairs when deciding how much to offer.

2. Banks Have Strict Offer Submission Guidelines

Negotiating over the terms of a home sale is normally a relatively informal affair, but many banks have strict guidelines for submitting offers. If you’re missing paperwork or have incomplete forms, the lender may reject your offer out-of-hand, so always read the submission guidelines carefully.

3. Be Prepared to Wait

Banks often collect several offers on a foreclosed property before deciding which to accept, so be prepared to wait weeks for an answer. They also typically won’t make a counteroffer, so try to offer as much as possible, get pre-approved for a loan, and limit contingencies to improve your chances.

4. Hire a Real Estate Attorney

A skilled real estate attorney will guide you through the process of purchasing a foreclosed home, explaining your options and helping you avoid common, potentially disastrous mistakes. Having a skilled lawyer to protect your interests provides valuable peace of mind and ensures you get the best value for your investment.

Whether you’re purchasing a foreclosed property or putting a house on the market, turn to the experienced attorneys at Bernardini Law P.C. in North Andover, MA. They pride themselves on providing a comprehensive range of real estate services, from writing sales agreements to reviewing contracts. Call (978) 794-5525 to schedule a consultation with a real estate attorney.