Are you ready to buy a foreclosure?

Due to the mortgage crisis that our country faced over the last several years, there are continually more and more foreclosure properties that are being put up for sale everywhere you turn. Of course, this can be very tempting for homebuyers as people can sometimes get properties for 30% or even less on the dollar.

However, if you are considering a foreclosure property for your next purchase, then there are some common pitfalls that you will need to avoid along the way to protect yourself and your future asset. Let’s review some areas to be aware of before making any serious offers.

1. Avoid Making Emotional Offers:When you are planning on putting a bid down on a property, you need to be extremely confident with the home’s current condition, its true market value, and what will be needed to fully restore the property.

Too many buyers will think that they found a great deal and fear that they will lose the home to another bidder. So instead of taking the time to truly do their homework and complete the proper inspections and analysis, they can end up locking up a property for more than it’s actually worth.

2. Estimate Neighborhood Values:Consider what other comparable properties are selling for and talk to a real estate agent who has a working knowledge of the area. In fact, it’s a wise decision to thoroughly review these questions and any other recommendations your Real Estate agent may make:

Is this neighborhood a desirable location. Are there schools, parks and shops nearby? Will I feel comfortable walking down the street at night?

What schools would be available for my kids or future buyers?

Were there any other foreclosures or investor sales that could negatively affect the future value of my home?

How long do I plan on living there and how could that affect things?

What type of appreciation should I expect?

3. Get Preapproved:Before you even start looking at homes, you must get preapproved on a mortgage in order to know exactly what you can afford. Sadly, many buyers can miss out on some phenomenal deals or spend hours of wasted time because they avoid this step. Show banks that you are a serious buyer and have your financing in place!

4. Get Professional Help: Not only should you seek the expertise and of an experienced Realtor®, but you may also need guidance from a real estate attorney or financial consultant as well. Each professional can ensure that you are making the right choices throughout the process and can protect you from any issues you may come across along the way.

Remember that there is a lot more than meets the eye when you are trying to buy a foreclosure property. Negotiating with the banks, filling out paperwork properly, and undergoing all the necessary inspections can be a very detailed and tedious procedure. Therefore, we encourage you to give me a call today to get started. Put my years of experience to work for you.

With the complexity in today’s mortgage and real estate market you will benefit from the advice and guidance of an experienced and knowledgeable mortgage and real estate professional. To see how our technology supports the needs of Buyers and Sellers, click here.

I’m always available to answer your questions or discuss your concerns. Just text, call (650 325 7877) or email me for a prompt response. If you are in the San Francisco Bay Area, I invite you to take a look at our Resource Center, www.AboutBayAreaHomes.com. There you will find links for active home listings, home loan information, market activity reports, home seller strategies, staging and decorating ideas and more.

Russ Boyd and his team professionally assist buyers, sellers and homeowners in the Peninsula Communities of the San Francisco Bay Area. They serve clients in San Mateo, San Francisco, Santa Clara, Alameda and Contra Costa counties. Licensed Real Estate Broker by the California Department of Real Estate, 01264240. National Mortgage Originator License Endorsement 230411.