In the current economy, the influx of foreclosed properties selling for incredible prices is at the highest level ever in the United States. Although it would be easy to get caught up in this excitement, make sure to keep a few things in mind before jumping right into a sale.
Make sure you know what your bottom line is. Don’t overbid on a house that is in the middle of a bidding war. You will lose the savings you were hoping to gain. Stay in touch with the people who can make a difference, the asset managers at the financial institution who is selling the property. Never know what you might find out from them.
Don’t go into a bid before you have gotten pre-approval for a loan amount and know how much you can spend. Being pre-approved might give you a leg up if the bid is between two of you. Also, don’t be afraid to buy something that might need a little help in the “fix it up” department. You can still be purchasing a home that will appreciate greatly over time and a bit of effort.
It is very easy to want to get an offer out there to get your place in line but don’t react too quickly. See what the bids are going for and then come in a bit higher if you still want the property. Before you buy any property make sure you have a contractor or inspector with you. The worst thing you can do is buy some place that has such issues that you will spend too much correcting them for it to be worth the price.