Buying Foreclosures

November 2011

Purchasing a foreclosed property is a relatively straightforward process. A financial institution now owns the property. You deal directly with them. The property is sold “as-is.”

Although the process may be a bit slower than a conventional sale between a private owner and a buyer, it’s very much the same.

But there are some things you’ll need to be aware of.

• As stated, the property is typically sold “as-is.” You’ll want to know the condition of the property to know what you’re getting into.
• Never, ever, buy a property sight unseen. No matter how low the price, you’ve got to see it for yourself. It might be tempting to place an offer on a property that you’ve seen on the Internet, but don’t.
• Are there other foreclosed or for sale properties nearby? This could be a sign of a problem in the neighborhood. Remember, you’re not just buying a house, but you’re buying into a community. Make sure there is one.
• How well has it been maintained? When a property has been neglected and then foreclosed, there are many things that can be an indicator of big problems. What condition is the landscaping in? Has it been recently treated and inspected for termite damage? Are all of the fixtures and appliances in place? You’re buying a property “as-is.” Make sure you fully understand that.
• Property titles and deeds will be limited or “special.” This does add some risk to the buyer. If you plan on purchasing a foreclosed property, get help and do a full title search to make sure there are no leans or complications on the deed.

We’d be happy to help you if you’re interested in looking into foreclosed properties. The Dunes Marketing Group has strong experience in helping buyers purchase foreclosed properties. They’re aren’t as many in the Hilton Head area, but the ones that exist may offer some significant bargains. Learn more or request information here.