Choosing to buy a foreclosed home is just one option home buyers and investors have when seeking a new or additional property. But why would someone choose a foreclosed home and what is it?
While it’s important to get educated about the process, you’ll also need someone who’s experienced in real estate and foreclosed properties. If you’re looking for a new home or want to invest in real estate, speak with a Clever Partner Agent today, and see how they can help you on your journey.
What is a Foreclosure?
Buying a foreclosure means the home is currently owned by the bank. It was previously owned by an individual who stopped paying their mortgage, and lost the home. After this happens, the bank takes the property back and attempts to sell it to make back the money lost.
Many people take advantage of foreclosed properties because they think they can get the house at a good rate, or they want to renovate and flip the house. Some even take this opportunity to start rental properties. It’s important to learn the pros and cons when getting involved in purchasing a foreclosure.
Pros of Buying a Foreclosed Home in Ohio
The most obvious benefit of buying a foreclosed property is getting the home at far below market value. After doing this, it’s possible to fix it up and increase the value, which can make it a steal for the person who’s able to do so at a low cost. It’s possible to find foreclosed homes anywhere on the market, from desirable cities such as Hamilton to Columbus, and everywhere else across Ohio state.
Many people use a foreclosure purchase as an opportunity to find a house that’s bigger, has more property, or is in a neighborhood that would otherwise be difficult for them to move into.
Cons of Buying a Foreclosed Home in Ohio
While buying a foreclosed home sounds like the easiest way to get a home, particularly a nice one, it comes with drawbacks. Foreclosure properties aren’t an easy fix, since there are so many parties involved. Between the buyer, the bank, and the individual who foreclosed on the home, it could take years, and sometimes even a lengthy court process. Even after buying a home, new homeowners have several bills to take care of right away. These include everything from liens that were placed on the home, past-due property tax payments, and even fixing the home so it’s up to code. That’s not even touching on making the changes you’d like to see.
Steps in the Process to Finding a Foreclosed Home in Ohio
1. Pick a City and Find Foreclosed Properties
Before looking for any random foreclosed properties around the state, it’s helpful to know what options are out there. Narrow down a list of cities in Ohio with desirable towns and neighborhoods, such as the city of Hamilton or Columbus.
Consider qualities important to you as a buyer, even if you plan on flipping or renting out the property. Are you looking for a location that has access to quality schools or is near amenities, such as parks or shopping? Keep these in mind as you search for a few properties you’re interested in. If one doesn’t work out, you’ll have a selection to choose from.
2. Get Help From an Experienced Agent
It’s important to get help from someone who knows the ropes, even if this isn’t your first time being a foreclosed property. If you’re looking for multiple rental properties or want to buy a home for yourself at a low rate, an experienced real estate agent can guide you. They can point out certain qualities of a home or area you overlooked and let you know what the next step in the process is.
By working with someone who has experience in foreclosures, you eliminate the guesswork and the odds of losing out on a good deal because of missed communication or paperwork.
3. Understand What the Full Process of a Foreclosed Home Entails
Buying a foreclosed home is more than securing the deal and walking away with a new house. You’ll need help to ensure the house is restored to code and abides by the laws in the area so it isn’t condemned. In cases like this, a lawyer and building inspector can make a huge difference in helping you understand the process and save money.
Because the home is purchased as-is, there might be a lot of repair work you must deal with. If you have further adjustments you want to make to personalize the home, this will be indispensable later on.
If you’re looking for a foreclosed home in Ohio, there are plenty of benefits in purchasing one whether you’re buying for yourself or making an investment. A Clever Partner Agent can help you find the right property for your needs and assist you with the unique process of purchasing a foreclosed home. By having an experienced professional help you navigate the process, they can help you get the best value for what you’re looking for.
Get in touch today and find out how a Clever Partner Agent can help you purchase a foreclosed home in Ohio.