PA Real Estate Blogs

Common Pitfalls to avoid when attempting to purchase a foreclosed property

1. Work with a Qualified Realtor with experience in handling the complexity of a foreclosure to avoid unnecessary risk.

2. Have your purchase agreements reviewed by an attorney. It’s important to know that real estate agents are not Lawyers. Foreclosure laws vary from State to State if you do not have the proper language in your purchase contract, wrong font, or punctuation you can be at risk.

3. Approach your purchase as a long term hold- Although you may get lucky and be able to flip the foreclosed property with a year if this is your objective do not buy a Foreclosure.

4. Impressed with the low purchase Price- Although the price may be significantly lower than a few years back don’t be fooled. The values during the real estate boom were artificially inflated and do not represent a true bench mark of value. Many foreclosures require a great deal of work which will also affect value.

5. Searching too broadly- today there is a great deal of inventory on the market and many properties to choice from. It’s easy to become overwhelmed. Center your activity on areas you know well, and a home and a demographic that will support your objective.

6. Property Inspection- since the seller was in a financial distressed situation it is doubtful they kept up with the maintenance of the property and its component. Foreclosures sales are sold “As Is” and since the seller is not around to ask questions it’s very important to due your homework.

Bill Sands Owner-Broker “Sands & Company Real Estate” www.PaRealEstate.com