Saturday, January 10, 2009

Pro/Cons of Buying Foreclosures

Advantages of Buying Foreclosures:

Lots of homes to choose from

Aggressively priced.

The owner (the bank) really wants the homes


Banks are relatively swift in making an offer decision — often as quickly as a few days (in stark contrast to the weeks on end a short sale decision can take).

You will have an inspection period (typically 10 days 7 days for cash) after contract acceptance to have the home inspected. Cancellation in this inspection period is not difficult at all.

The bank is not emotionally attached to the home. This can make negotiations swifter — though there is typically little if any room in price negotiations.

Disadvantages of Buying Foreclosures:

No Repairs “as is” the bank will not do any repairs

Buyer competition — may be in a multiple bid situation. have to act fast

Condition may be an issue.

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