Tips for Buying Foreclosed Properties

By
Real Estate Broker/Owner with Lang Premier Properties

Buying any home is a big decision and requires much thought and consideration – the same goes for buying a foreclosure home.   The real estate professionals at Ben Lang Properties as always would like to inform Macomb County and Oakland County home buyers that there are many things potential home buyers should know before investing in a foreclosed home.

With the housing market back on the rise, many people will want to snag those foreclosures and bank-owned properties while they can. Before any Metro Detroit home buyer begins searching for homes to buy – Ben Lang Properties suggests a home buyer consider the following tips for buying foreclosures first.

1. Identify the reason for purchasing a foreclosed property

Do you intend to occupy the property?  Do you plan to flip (resell) the property with or without repairs?  Do you plan to rent the property?

2. Choose a real estate professional who is experienced with foreclosure properties

Most Oakland County home buyers and Macomb County home buyers tend to work with a buyer’s agent when purchasing REO homes. These Realtors can help a home buyer work out disclosure agreements, fees, preapproval letters, and negotiations.

3. Establish the foreclosure properties market value

A Realtor prepared Comparative Market Analysis is often the best bet to determine real market value.  Ask for a report that contains information on:

4. Plan a property inspection

Utilities are usually shut off when a foreclosure property goes on the market. Banks may arrange for utility turn-on for a two or three day period after the property goes under contract.  Sometimes home buyers must pay for re-winterizing the property, this is something to discuss with your Realtor.

5. Calculate repair costs.

Many foreclosures are in a state of disrepair ranging from mild cosmetics to major rehab candidates, and the buyer is usually financially responsible for all repairs on REO homes.

6. Patience pays

When you buy a foreclosed property from a bank, many people are involved, so home buyers need patience.  Offers made on REO homes typically go through a longer process than other types of home sales and delays are inevitable.  

For the full story on buying foreclosures, visit our blog at BenLangProperties.com

                              ben lang sold

 

Ben Lang Properties specialize in selling Oakland County Real Estate.  Troy Realtor selling Metro Detroit real estate, working with Keller Williams Realty in Troy Michigan.  See what past clients have to say about Ben Lang.  Working withshort salesand foreclosuresin this challenging real estate market to get the best deals for home buyers.

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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Jessica Redinger 04/16/2012 08:40 PM
Topic:
Home Buying
Location:
Michigan Oakland County
Groups:
1st Time Buyers
Realtors®
Tags:
oakland county realtor
housing market
buyinh foreclosures
ben lang properties

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Rainmaker
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Kevin Guttman
Fairway Mortgage Corp. - Colorado Springs, CO
Top Mortgage Originator

This is great advice for anyone buying a home, not just a foreclosed home. Thanks Ben!

Feb 09, 2012 12:03 PM #1
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Praful Thakkar
Keller Williams Realty - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Thanks, Benjamin. Bookmarked and will send it to some of my investor buyers.

Apr 16, 2012 08:46 PM #2
Rainer
64,273
Lang Premier Properties
Lang Premier Properties - Clawson, MI
Metro Detroit Real Estate Group

Thank you both for the comments.  Best of luck to you gentlemen this year!

Apr 20, 2012 09:13 AM #3
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Rainer
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Lang Premier Properties

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