What to Expect With A Foreclosure

Foreclosures can be an enticing way to leap into real estate in Phoenix but also quite complex. This realty scenario has many rules and best practices to be aware of before jumping in with both feet. Here’s what you need to know for a successful foreclosure-buying experience!

Banks

Foreclosures are owned by financial institutions and each will have its own set of rules governing the sale. Some want a tight deadline for closing otherwise the sale could be forfeited or require their own proprietary forms as part of the offer or purchase paperwork. An easy way to make sure you are complying with any process rules is to work with an experienced realtor and obtain pre-approval for the loan before making offers. 

Offers

Making an offer on any real estate in Phoenix can be exciting, but a foreclosure may be even more so. The market is hot and foreclosures do not last long, typically selling within 48 hours of listing. If you love the property, work with your realtor to submit a competitive offer without hesitation. The idea of submitting a “lowball” offer is not likely to be successful in Phoenix today.

Be Prepared

Most foreclosure real estate in Phoenix is sold on an as-is basis. That means that you are buying the home in its current condition. Be sure to do a thorough walk-through before making an offer. While some issues are hidden, some are quite obvious.

If you make an offer that is accepted it is important to purchase a home inspection from a licensed home inspector. A structural, general and pest inspection should be performed and a full report provided. While the bank may or may not choose to remediate problems or apply any discount to offset repairs, you’ll be prepared for the expense or can back out of the sale without financial penalties.

The same should go for purchasing an appraisal, even if paying cash or if your loan company does not require one. Paying more than the home is worth could mean that you may not ever see a return on your investment.

Purchasing foreclosure real estate in Phoenix can get you a great deal on wonderful property. Navigating these challenging waters is just one of the things that RooPho Realty does. Contact us today to get started on your search!