Ask An Agent: What Should I Expect When Buying a Foreclosure?

• May 28th 2009

by Mark Wellborn

In a new weekly feature, we turn to real estate professionals to get their take on questions that we are unable to answer. Today, a reader inquires about what the buying process is like when purchasing a foreclosed property. Long & Foster's Pamela Wye offers up some insight.

Question: I want to buy a foreclosure, but hear that the process varies from the usual buying process. So, what should I expect buying a foreclosed property?

Answer: In today’s market, the possibility of buying a foreclosed property and getting a good deal is becoming more and more common, but there are two things to keep in mind: Buyers should be prepared to move quickly on a property, but also be patient with the bank.

The bidding process for foreclosures is a lot like an auction: Buyers will find themselves in a competitive situation with others making fast-paced offers. Once an offer has been submitted, the waiting time between the date of submission and a response can range from two business days to a few weeks. This is where patience is key.

It is also important to remember that when you are dealing with a bank-owned property, the bank is the entity setting the terms. Typically, a bank addendum will be presented to the buyer that spells out their terms, and anything in the addendum supersedes the contract to purchase.

Lastly, if you are buying a foreclosed property, it is very important to get a home inspection. Some buyers become frustrated when the inspection reveals they may have to pay for repairs or renovations, but this additional hassle is usually offset by savings on the home.

This article originally published at https://dc.urbanturf.com/articles/blog/ask_an_agent_what_should_I_expect_when_buying_a_foreclosure/963.