Buying a foreclosed home can be an excellent strategy to save money. However, do so carefully. Without the right preparation and advice from a real estate agent, you could end up with a long list of time-consuming repairs to tackle. Before you start looking for a foreclosed home, consider these key facts. 

What Should You Think About Before Buying a Foreclosed Home?

1. Buying at Auction

You can buy a foreclosed home through a foreclosure auction, or you can find homes that are banked or real estate-owned (REO). When buying at auction, the house goes to the highest bidder. This might seem like a way to save some cash, but it can also be risky.

This is because you generally can’t see a foreclosed home before you buy it at auction. In theory, you could end up with a home in poor condition that requires hefty repairs, which would ruin your goal of saving money. 

2. Purchasing As-Is

Whether you can see a home pre-sale or not, you will have to buy the home as it is. This can be a dream for anyone looking for a fixer-upper.

However, be wary of this situation if you aren’t keen on renovations. Luckily, a real estate agent can help you decide whether purchasing a foreclosed home is the best option for your needs and goals. 

3. Scheduling Inspections

Even though you can’t see a home when buying at an auction, you usually can if you’re purchasing a bank-owned or REO house. In these cases, always schedule an inspection. The inspector will point out all of the issues that you would need to fix once you own it.

If the undertaking is too much or the home isn’t safe, it’s generally best to pass and move on to the next one. Staying smart about the condition of the home will help you stick to your financial goals.

If you want to learn more about buying a foreclosed home, contact Big Journey Homes - Lauri Bauman. Serving Denton, Lake Dallas, Frisco, Flower Mound, Argyle, McKinney, and Corinth, TX, she has been a trusted real estate agent in the region since 2000. When you are searching for a home, she can help you narrow the search to fit your needs. Visit Big Journey Homes online to browse their current listings, or call (940) 321-5111 to schedule a meeting. You can also text Lauri directly at (214) 566-1088.