Top Tips for Buying a Foreclosed Home in Las Vegas
Posted on July 2, 2019 by oozle
Regardless of whether you’re trying to invest in the house-flipping business or are just trying to find a new place to live, foreclosed homes can be a risky investment. There are a few things to consider when buying a home in Las Vegas, but buying a foreclosure can feel like an entirely different process. If you’re looking into the foreclosed home market, make sure to follow these tips.
1. Don’t Skimp on the Inspection
One of the most important things to consider about buying a foreclosed home is the condition of the home. It’s not uncommon for a foreclosed home to be unoccupied for weeks or even months at a time. This means there are going to be problems that you, as the new homeowner, have to cover the cost of yourself.
Invest in a good home inspection to detect major problems early. A home inspector does more than look for visible damage. They also look for more invisible issues, like mold lurking in the wall or hidden pests in the attic.
You can expect to pay a few hundred dollars for a professional inspection, but it’s worth it. Professionals can save you money on doing the right repairs first. For example, if you paint over an area that is at risk of wood rot, chances are, you’ll be paying to have the wood repaired and putting down another sum of money to repaint the area. A good inspector will catch the wood rot to let you know that should be fixed first.
When getting your home inspected, you should follow the American Society of Home Inspector’s (ASHI) standard of practice and make sure the inspector checks your:
- HVAC system
- Plumbing and pipes
Check out this video to see what see what else you should expect with a home inspection from The Mortgage Reports.
2. Get Estimates on Repairs Before Purchasing
Once you get the inspection, it’s time to get estimates on how much it will cost to do any necessary repairs. Unlike purchasing a house regularly, foreclosed homes are sold “as-is” meaning you will have to do or pay for all the repairs yourself.
Knowing how much repairs will cost can help you budget and decide a timeline you can follow to get your home feeling like home. Call around and get a number of estimates to find the best deal for you. Don’t choose the cheapest option, but you don’t have to choose the most expensive option either to get the most out of your repairs.
3. Go Through a Real Estate Agent with Real Estate Owned (REO) Properties
There are two types of “owners” of foreclosed homes: the bank or a real estate agent the bank has hired to sell the property. In the first phase of foreclosure, the bank itself is trying to auction the home. However, because it’s so early in the foreclosure process, you could be looking at a longer selling period.
An REO property means that the bank has hired a real estate agent to sell the house. This often means the house has been sitting unoccupied for some time, but it’s much easier to work with someone who regularly sells homes. While this type of foreclosure is more expensive than a home that was just acquired by the bank, there are many advantages to waiting until this point.
With many foreclosures you can’t perform an inspection until after you’ve bid on the house. Real estate owned properties often can be inspected before purchasing.
4. Check Out the Neighborhood
This tip is true of buying any house. If you love the area, then the house can feel more like home. You can check out Money Talks News’ list for a more in depth list of what to look for, but here are a few things you can consider:
- Does the area have a high crime rate?
- Do neighbors and kids walk through the streets or does the neighborhood feel empty?
- Does the area seem noisy or quiet?
- Is it close to the freeway or public transportation?
- Can you see yourself living in the area for the next five years?
5. Work With the Bank
When dealing with foreclosed homes, you’ll be working directly with the bank or a real estate agent hired by the bank. This makes it a much different process than buying from an independent seller. Because the bank wants to sell the property as soon as possible, you may be able to negotiate with them to cover some costs of repairs or lower the price.
However, because the bank has most likely already lost money on the deal, the financing process may be more extensive, as you’ll need to prove to the bank that you can adequately cover the cost.
Need Some Inspections Done?
If you’re thinking about getting a foreclosed home, it may be time to get some quotes on some appliances. In fact, if the home you’re looking for is older, you may want to consider doing these four plumbing fixes. Call the experts at ProServ Las Vegas to get started on your next foreclosure renovation project!
Categories: Las Vegas