People with any interest in the real estate market probably know foreclosed homes can be cheaper than buying typical homes for sale in Irvine. Properties that have been repossessed by lenders can sell for up to 20 percent under the market value. However, finding and getting a deal on a foreclosure can be a little tricky for a new real estate buyer because it does involve a little more effort and bureaucracy. Use these tips to score a great deal on a foreclosed property.
Start Looking Near the End of a Year or Quarter
Buyers can often get better deals around the end of the year because banks want to close outstanding deals and record profits in their books. Real estate prices also tend to drop in the winter because most people move in the summer. You may be able to find a better deal by looking around in November or December.
Look at Properties in Person
Banks dealing with a lot of foreclosures do not always have time to create thorough and accurate listings. Visit the property in person to see if it has advantages like great landscaping or new appliances that were left out of the property description.
Pay Attention to Location
Foreclosures in nicer locations tend to be a better investment because a good area can increase the value of the home over time. However, you may want to avoid areas with multiple foreclosures because it could be a sign that the property value in that area may be declining. Your best options will be in a nice neighborhood that is not handling many other foreclosures.
Get Help from a Foreclosure Professional
The extra paperwork associated with foreclosures can be complicated, so it is a good idea to find a real estate agent who has a lot of experience working with foreclosures. Finding someone who has a good relationship with the bank or the bank’s listing agent can be a huge advantage when trying to score a deal.
Consider the Cost of Repairs
A low price on a property may not actually be a good deal if you end up paying so much in repairs that the total cost is more than the value of the home. Since foreclosures are often damaged, this is an important thing to consider when hunting for deals. Get a licensed home inspector to offer insight before committing to a property.
Plan Your Payment Options Ahead of Time
Many lenders offer better deals for buyers who are willing to pay in cash. Even if this option is not available for you, try to get prequalified for a property loan before you begin seriously hunting for foreclosures. Foreclosures go quickly, so you want to be able to immediately start the closing process for a home you like.
If you’re looking to buy property in Irvine, whether it’s a foreclosure or a regular sale, make sure you have a reliable agent who knows the local real estate market. Get in touch with OC Residential today, and we can help you find the perfect home in Irvine. Call 714-454-6304 to schedule an appointment.