7 Things You and Your NJ Real Estate Agent Should Review Before Purchasing a Foreclosure

What to carefully consider when working with an NJ real estate agent and considering the purchase of a bank-owned property.

 

It almost seems as if the real estate market is overflowing with foreclosed homes, home values are decreasing, and sending the government scrambling to manage this crisis. However, some realtors and homebuyers are seeing a once-in-a-lifetime opportunity in the gloomy headlines and a great chance to find a good deal in buying a foreclosed property.

Before buying a foreclosed home, here is a list of guidelines you and your NJ real estate agent should follow:

  1. Consider the neighborhood where the foreclosed home is. Your research should include a comprehensive evaluation of the neighborhood. You will not be able to get back repair costs if the home value is brought down by high crime and extensive foreclosures in the area. Try to check out the neighborhood at different hours in the day and night, to see if it is the type of place you can see yourself living in.
  2. Ask your NJ real estate agent about having a home inspection to see if any maintenance is necessary to avoid further damage. Inspectors will be able to check the house and find out if there are repairs or upgrades that are needed. All the details of the home will be discussed in the Seller’s Disclosure Statement, provided by your realtor.
  3. Have your NJ real estate agent find out how long the home has been left empty. Longer vacancy means more damage in several instances. Many problems can occur in the house if it has been empty for a while. If the home has not been occupied for a decent amount of time, you could find the following: dried out plumbing seals, sewer gases backing up and bugs or small animals in the sewer that could get in the house.
  4. Carefully plan your budget and do not let an extremely low price tag draw you into a quick buy. Ask yourself repetitively if you have the money for extensive and pricey repairs that these houses often need. You will avoid further risks if you do your research well.
  5. Check out the house yourself. It is important to essentially see for yourself the circumstances of the foreclosed home that you are planning to buy. Go in and take a good look around. Be the boss.
  6. Have your NJ real estate agent look into the property details and find out if the home is winterized. Do not turn on any utilities in the home until you know the accurate condition of the pipes. If the pipes cracked during winter, water will leak into walls, and mold may take hold when you turn the water on.
  7. Find out the landscaping of the property from your NJ real estate agent. Try to find out if it has been mistreated or neglected such as having trees that are untrimmed, or bushes and vines that can continue to grow and destroy the house. Determine whether or not there are vines and roots growing in the foundation that can potentially destroy the foundation of the home.

 

The real estate market is changing rapidly and expanding into new avenues almost daily. Sometimes it can be very difficult to find the answers you need on a specific topic or issue. In times like these, you need a real estate professional who will provide valuable information and trustworthy advice. For more information about NJ real estate, call us today or click here to be connected with one of our top real estate specialists.