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What are the pros and cons of buying foreclosed property e.g. home?

I am considering buying a foreclosed home but I am not sure if that’s right thing to do. So I guess I am more interested in cons of buying a foreclosed property? Thanks
Well, the cons are typically as follows: 1. Foreclosed upon homes typically are in a state of disrepair as the owner could not afford it. 2. There is rarely any ‘warranty’ on the house, it’s purchase as-is and you really don’t know what could be wrong with the house 3. Many times its a closed bid process and you have no idea what anyone else is bidding causing you to bid higher to get the property. 4. It’s hard to set up a time to get a home inspector to look at the house before the bid is due. There’s more, but those are the most important. It’s riskier than buying a home the normal way, which is why they are normally cheaper.

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This entry was posted on Monday, March 15th, 2010 at 2:29 pm and is filed under Buy Foreclosed Homes. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

2 Responses to “What are the pros and cons of buying foreclosed property e.g. home?”

  1. Ken B Says:
    March 14th, 2010 at 10:37 pm

    Well, the cons are typically as follows:

    1. Foreclosed upon homes typically are in a state of disrepair as the owner could not afford it.
    2. There is rarely any ‘warranty’ on the house, it’s purchase as-is and you really don’t know what could be wrong with the house
    3. Many times its a closed bid process and you have no idea what anyone else is bidding causing you to bid higher to get the property.
    4. It’s hard to set up a time to get a home inspector to look at the house before the bid is due.

    There’s more, but those are the most important. It’s riskier than buying a home the normal way, which is why they are normally cheaper.
    References :

  2. ruben218 Says:
    March 14th, 2010 at 11:17 pm

    i dont think its a bad idea. I mean i`ve been selling a bunch of foreclosures lately. people are taking advantage of some of them. The only thing that sucks is that right when you think you found a bargain..more than likely the bank will beat you to the purchase and re-sell it to you at a higher price. i`ve had about 5 customers which had this happen to them. I will say this though. as far as i know…..when you purchase a house from a seller, you can negotiate the closing costs that they will help you with, but i dont think thats possible with a foreclosure.
    References :

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