The main benefit of purchasing a foreclosed home is savings. Depending on market conditions, you can purchase a foreclosed home for considerably less than you’d pay for comparable, non-foreclosed homes. The main risks come from the degree to which a foreclosed property can be a mystery to the buyer.

How do I buy foreclosed property?

5 steps to buying a foreclosed home

1. Find an agent specializing in foreclosures.
2. Get a preapproval letter.
3. Look at comps before making an offer.
4. Bid higher if other foreclosures are selling fast.
5. Be prepared to buy a foreclosure in “as-is” condition.

Is it possible to buy a foreclosed condo?

Buying a foreclosed condo has potential pitfalls, though, including stringent financing requirements and poor property or condo association conditions. Research and inspect the condo before you take the plunge. The first step to buying is getting pre-approved for a loan. You and the condo association must meet the lender’s guidelines.

What are the pitfalls of buying a foreclosure?

Buying a foreclosed condo has potential pitfalls, though, including stringent financing requirements and poor property or condo association conditions. Research and inspect the condo before you take the plunge.

How much is a discount on a foreclosure?

Recent sale prices of comparable condos generally dictate price. The discount on foreclosed homes is about 7 percent off of comparable listings, according to interest.com. When writing your offer, be aware that savings diminish as foreclosures sales slow and condo demand increases.

What’s the best way to find a foreclosed home?

Pick a Professional. You generally have two options for finding and negotiating foreclosed condos: use the bank’s agent or hire your own. The listing agent who works directly for the bank that owns the condo can represent you, too.