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There are several elements that have to be considered when purchasing a foreclosed property to make sure it is an actual deal. Foreclosed properties often have unresolved issues that can affect the timeframe and budget set out. Attention to these key elements will help minimize the risk of purchasing a foreclosed property with a bad deal. To help distinguish a good deal from a bad one Forbes Real Estate Council have listed the eight considerations that are often overlooked to ensure investors a higher chance of success. The first consideration an investor should know is “As Is” condition because this means the buyer assumes the risk. These risks include environmental issues, open permits, open violations, and title claims. Title claims are another consideration to pay close attention to because the purchase may seem sweet yet will be hard to obtain a clear title once the deal is closed. Structural inspections are just as important due to the unhappy homeowners who are forced to vacate the property and often times remove fixtures or cause structural damage to the property. To protect yourself it is important to obtain a home warranty because it is likely the property had been vacated for a while which can cause issues with plumbing, water heater, furnace, and more. Identifying what is being purchased can be an advantage that can help determine if your focus will be on the property conditions if it has gone through the process. It is best to let the banks do the hard work because that will provide the buyer a free and clear property. When purchasing a foreclosure property it is important to understand closing time is out of your hands, the bank or lien holder has the last word when settling. Cosmetic fixers are often time seen as good cheap options however many of the properties have been neglected and should be inspected to ensure the buyer is actually getting a great deal to prevent a budget overload. Last of all what a buyer sees is not what they’ll get, the previous owner can remover or take everything in the house with very little legal consequences which will decrease the value of what was purchased.

It may seem easy and convenient to purchase a foreclosed property yet there are many things the general public doesn’t know, to become more informed click Here!