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Buying a Foreclosed Home Isn’t Taboo and Is Easier than You Think


It may seem as if you’re benefiting from the misfortune of someone else, but purchasing a foreclosed home is a great way to secure a good deal on an otherwise pricey home. Negative connotations aside, the number of foreclosed homes on the market is not nearly at the same rate as it was during the housing market crisis of 2008. In fact, the number of foreclosed homes in Philadelphia depends greatly on the zip code, ranging from 1 in every 1,012 to 1 in every 416 homes. With the right realtor from a top real estate team in Philadelphia and a property in mind, it can be easy to buy a foreclosed home. Here’s how:

Never Blind Sale You should never buy a home, foreclosed or otherwise, without physically seeing the house first. You should ask your real estate agent how the long the property has been left empty. If a foreclosed home has been left abandoned, a number of safety risks and framework integrity issues can be present in the house. This includes sewer and plumbing issues, HVAC repairs, and bug infestations. The last thing you want is to save money on a foreclosed property only to spend the savings on costly repairs and exterminators. You should take time to do a walkthrough of the property, both inside and out, before purchasing.

Budget Carefully Similar to any home purchase, you should have an amount that you are comfortable with spending and stick to it. Foreclosed homes look idealistic because of their relatively small price tags. However, don’t get lured in by the pretty price tag. What you won’t pay in price tag, you may need to pay in repairs. If you’re fine with that, make sure you have the money in hand to be able to make the purchase worthwhile. Additionally, unless you plan to pay cash for the house, you will need a recent pre-approval letter from a lender. Foreclosed homes can go quickly, so it’s better to come to the table with your pre-approval in hand than the other way around.

Gather Your Team When looking into purchasing a foreclosed home, you need to have a team in place to make this possible. Working with a real estate agent from a top real estate team in Philadelphia will guarantee you access to the tools and resources necessary to make purchasing this home a reality. Many realtors have longstanding relationships with banks, meaning access to homes that haven’t hit listings just yet. Your real estate agent can also help you find the right lender and walk you through any paperwork necessary to make the home yours.

Don’t feel guilty about buying a foreclosed home. Yes, the circumstances by which you were able to find the house are unfortunate, but many times, you are actually helping a neighborhood survive. Foreclosed and abandoned homes can significantly decrease the value of a neighborhood. The sooner these homes are off the market, the better. So, if you find a foreclosed home that suits your needs, talk to a realtor in Philadelphia to get started.

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