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A foreclosed home is an excellent solution if you want to buy a house. These properties are purchased by a bank or real estate company when the owners can’t pay their debt. They’re then sold at a discount to new buyers. Work with a real estate agent to learn all the details about purchasing a foreclosure property before proceeding, and use the guide below to get started.

How to Buy a Foreclosed House

1. Find a Real Estate Agent & Pre-Qualify

Working with a real estate agent is a smart idea any time you buy a home. They can connect you with real estate owned (REO) properties and the companies selling them. The agent will assess your goals and also connect you with mortgage lenders to get pre-qualified. You’ll know how much to spend and won’t have to waste time sorting through potential properties.

2. Schedule an Inspection

real estate agentWhile some foreclosures may be neglected, many are move-in ready. You’ll still want to schedule a home inspection, however. An inspector will check the appliances, systems, wiring, foundation, and other features. That way, you know exactly what you’ll be buying. The real estate agent can help you decide whether the investment is worth it and then determine how much you’re willing to bid.

The real estate agent will also look at homes of comparable value in the areas to gauge the property's previous, current, and estimated future value. This will further help you refine your bid.

3. Place a Bid

Foreclosures often go to auction. The real estate agent will submit your bid to the real estate company and can bid higher, if necessary. Factor future plans into your bid price; if you’re purchasing a foreclosed home that will need some repairs, consider the cost of renovations. Apply this to the bid price so you don’t overspend.

Don’t get emotionally attached. What begins as a fantastic deal could quickly become a poor investment if you chase higher prices than you want to spend in a bidding war.

 

Are you ready to buy a home? Hensley Realty Co. of Russell, KY, offers all the tools and opportunities you need. This company is led by Dale Hensley, who is backed by 40 years of experience. Dale and his team will carefully assess your goals and help you find single-family homes and other properties that meet your needs. Call (606) 836-9770 to schedule a consultation, and visit their website to start exploring properties. Connect on Facebook for news and updates.

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