Making an Offer on a House
Making an offer to purchase a foreclosed home is somewhat different from a standard home purchase. Your deal will be introduced to the lender that took back the home when the homeowner could no longer make the payments. A foreclosed home is generally sold in as-is state, with no vendor disclosures given to the buyer. The lender will generally not respond to every deal as it comes , but hold all supplies so as to pick the best from among those received. Finally, unlike a purchase in the homeowner, you are not dealing with a specially motivated seller. The lender could be in no rush to sell the home because it wants to be sure it gets high dollar.
Get preapproved for a mortgage loan in case you won’t be buying the house with money. It’s important to have a firm commitment, in writing, from a bank or lending firm, to lend you the money to purchase your home. Contain the preapproval letter with your purchase arrangement.
Hire a realtor who has verifiable experience in managing foreclosures and lenders. Interview several agents before you find one that you feel will correctly represent you at the negotiating process. Your agent will submit the deal you indicate and steer you through the escrow procedure if your offer be approved.
Ask that your agent compile a current market evaluation to ascertain the house’s value. This is a totally free service that representatives provide, and the information can help you to ascertain the amount you will offer on the home.
Scrutinize the condition of the home from top to bottom. If you’re not a contractor, hire one, or hire a home inspector. Many foreclosed homes have hidden issues that you should be aware of before making a offer to purchase. Consider the cost to repair any issues when deciding what to offer on the home.
Make your offer. Don’t lowball the lender. Lenders aren’t homeowners; they are companies, and the houses they sell are assets. The majority of the time the cost they set is exactly what they need to realize so as to recover their losses from the last borrower. Understand that there will probably be competition for your home too, and you may lose if your supply is not as strong as it may be.
Contain as much earnest money as you can with your own offer. Sometimes known as a”deposit,” a large earnest money deposit will show the lender that you are a serious buyer.