Even with all the economic uncertainty that the world has experienced in the last few months, many areas still have housing markets that are exploding. But sadly, for those who have had financial trouble and haven’t been able to afford their homes, bankruptcy and foreclosures are likely on the horizon.
However, if you’ve been lucky enough to remain financially stable during this time, you may be able to find a foreclosure that’s right for you and that comes at a great price. Keep in mind, though, that buying a foreclosed property isn’t necessarily an easy or turnkey process. So to help you get ready for what you might be facing, here are three ways to prepare for moving into a foreclosed home.
Dig Into The Home Inspection
Before you even think about finalizing your purchase of a foreclosed property, you’ll want to ensure that you have an inspection done on the property. This will likely be the only way that you’ll know the true state that the home is in.
Once you get the inspection back, Jennifer Bradley Franklin, a contributor to Bankrate.com, recommends that you really dig into the inspection to see what you’re facing with the property. You’ll be able to see what problems you’ll have to deal with, which can give you insight into whether or not this home would be a good investment for you.
Know That There Might Be Vandalism
In some instances, you may not be able to really get in to see the property before you make an offer on the home. If this is the case, it’s good to know that there’s a chance that the property won’t have been well taken care of.
According to Amy Fontinelle, a contributor to Investopedia.com, some foreclosed homes have been vandalized for one reason or another. Sometimes, the vandalism takes place if the home is left vacant. Other times, the previous owners may have vandalized or stolen items when they were forced to move out. Either way, it’s important to note that this could be the state in which you find a foreclosed home.
Have Room In Your Budget For Repairs Or Renovations
With traditional home purchases, you can sometimes negotiate with the seller to get a discount on the home for work that needs to be done. But with a foreclosed home, all of this cost is going to be passed down to you.
Knowing this, Laura Mueller, a contributor to Moving.com, shares that you’ll want to make sure that you have room in your budget to make the necessary repairs or renovations that will make the property liveable. Otherwise, you may be living in a property that’s not exactly fit for occupancy.
If you’re thinking about buying and then moving into a property that’s been foreclosed on, make sure you use the information presented above to go into this situation with your eyes wide open.