Everyone loves to get a good deal on their purchases, especially when it comes to a big ticket item. With so many homes on foreclosure, you would think that maybe you could get the best deals on a home. However, as tempted as you may be to buy a foreclosed home, thinking that you’re saving yourself a bundle on what is one of the biggest-ticket expenditures you’ll make in your lifetime, it’s important to remember that there are distinct disadvantages to buying a home in foreclosure and you need to be on the lookout for the warning signs.
One of the biggest disadvantages of foreclosed homes is the risk that there are all kinds of liens and liabilities associated with the home that you don’t know about. These can really come back to haunt you, right at the moment where you thought the deal was finalized and you were ready to move in. You could even find out there’s a lien on the home after you’ve moved into it. So if you continue with your purchase – make sure you do thorough research on the house and get the help of professionals – such as lawyers and real estate agents.
Of course before purchasing a home – you want to be able to do a thorough walk through of the home to make your final decision. However, if you are unable to do this, you may be in a surprise for all kinds of damages done to the home that you will have to pay for yourself if you want to see the damage repaired. Foreclosed homes can lie vacant for a long time, and the longer a home is vacant the more it will fall apart with no one to maintain it. In worst-case scenarios, although rare, vandals can get into the home and trash it, homeless people can use it for shelter and leave in a mess or even rodent infested.
Another disadvantage you may want to be weary of when buying a foreclosed home, is that the value of the home may drop even further with respect to our economy. To avoid something like this – consider the various factors that may affect a home’s value:
- Location: Generally homes closer to the beach or major metropolitan area are higher in value – so despite all the expensive installations in a home, it does not change where the home is located.
- Neighborhood: The desirability of a neighborhood is determined by how much traffic there is – which can affect parking, large roads – causing too much noise, drainage system to avoid from floods, and the convenience of having stores, schools, hospitals, and freeways near by.
Buying a foreclosed home has its advantages, but keep in mind of the disadvantages mentioned as well before you consider making your move.