Top Things to Know About Buying a Home in Foreclosure11/23/2022
Foreclosed homes that have been neglected or abandoned can often come with hidden costs. If you are in the market to buy a home that is foreclosed on, here are 6 things to look for when buying a home in foreclosure.
- Find everything you can on the house’s history. Many states require a sellers Disclosure Statement. This statement provides the buyer with historical perspective of the home and its maintenance. What it may not tell you is when the bank foreclosed upon it. This is when a home inspection will help.
- Get a home inspection. A home inspection can provide a report on the structure, mechanical problems and any major components of the home or property. This will provide you a better picture of what you are buying and provide a way to prioritize the repairs.
- Are the utilities turned on? If the power and water are off to the home, has it been de-winterized? If the power and water have been shut off at the foreclosed home, you’ll want to get a plumber and electrician out to check the pipes and wiring before having it turned on. This includes the water-heater and furnace as well. If these items are left, they could be a fire hazard.
- Look for signs of maintenance, or lack of. Have the gutters been cleaned? Is there debris on the roof? Has the bathroom been caulked and sealed? If there are signs that maintenance has been deferred, you may run into costly fixes down the road.
- Check the foundation. Look for cracks, leaks or other damage. If you see water damage, this could be a big repair, with big costs.
- Resolve any liens. Check with the local municipality to see if there are any liens on the property. They could exist from unpaid contractors, utilities, the city, HOA’s or more.
Buying a home in foreclosure, can be a good investment if you know what to look for. If not, you could end up with a money pit.If you have any questions about buying a home in foreclosure in the Kansas City area; give Ed Rippee a call. He can give you the latest information and help make your home buying or selling, a smooth transition.