The savings opportunities that foreclosed properties can offer have made them a favorite for many homebuyers and investors.
When a bank forecloses on a home, it is losing money. This means it is typically eager to sell the property to a new buyer in an attempt to recoup its losses. This willingness to sell can result in a much lower price than would normally be offered, giving savvy buyers the chance to save. Of course, before you can buy a foreclosed home, you have to find one.
Where can you find foreclosures?
Depending on the health of the residential real estate market, the ease of finding foreclosures can fluctuate. However, there are some general strategies buyers can usually rely on.
Advertising
Anything that can be bought and sold is advertised, and foreclosed homes are no different. By keeping an eye out for real estate signs, newspaper advertisements or online announcements, buyers will have a good chance of finding a foreclosed property. Even just driving around a neighborhood you’d like to move into can result in finding a foreclosed home for sale.
Real estate agents
Turning to real estate professionals can also pay off. Both buyers and sellers agents will know the current market in the neighborhoods where they specialize and will be only too happy to point you toward foreclosures. In fact, some real estate professionals specialize in foreclosures, making them a good source of information.
Property auctions
Property auctions may be the best way to find foreclosures. Since property auctions typically feature numerous homes, they can also provide a better variety of foreclosure opportunities for buyers. In fact, finding foreclosures through property auctions has become even easier thanks to the Internet. Sites like Auction.com allow buyers to search for foreclosure homes in their area and set alerts to keep them updated on any new properties entering the market.
In addition to the lower prices that foreclosures can result in, property auctions streamline the process, making it even easier for buyers to find the right home. Not only do buyers get to see many offerings at once, they can eliminate long negotiation periods and ensure they’re on a level playing field with other interest parties.
