Foreclosed homes are typically a lot less expensive than homes on the market being sold by their current owners; and there really is no right or wrong answer to this question. I can tell you firsthand that I have a friend who will tell you never, ever to buy a foreclosed home after her own personal horror story. My husband and I, on the other hand, bought our dream home as a foreclosure a year and-a-half ago and it’s been a dream come true to live here – and our house is worth more than double what we paid for it. It’s all in the home you buy, your own personal opinion and how you go about making a decision like this that matters.
Buying a foreclosed home is not always a bad idea. Sure, you see them on reality shows and they are a disaster; and many of them are. Many people who lose their homes are bitter and angry, and they will take everything that’s inside the home and either steal it or destroy it. Many have not been cared for in a long time, and many banks are not willing to negotiate much on the price of a home. This is where an inspection comes in handy; and make it a good one. If a foreclosure doesn’t have much issue as far as the inspection goes, it’s probably not going to be much more of a headache for you than any other home. On the other hand, if you are looking for a home in terrible condition that you can fix up, you probably don’t care one way or the other.
If you find a foreclosure in good condition and the price is right, it’s a great buy. Our home was vacant for five years after it was foreclosed. It’s in our dream neighborhood, it’s perfectly sized for our family of six, and it was beautiful. The bank actually came in and replaced all the cabinets, countertops, fixtures and flooring that was destroyed and taken out of the house before we bought it, so it really did work out for us. However, you have to ask yourself if that’s something you can afford to deal with if you buy a foreclosure without these items. Does your budget include all new appliances, fixtures and even cabinets other basics or upgrades?
There is no right or wrong answer to this question; but there is much to consider. Ask yourself if you are willing to take a chance on a home that needs a lot of work, or if you are not. You might surprise yourself with the answer you are able to live with.
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