Buying a foreclosure home is a lot different from other types of real estate sales in Northern Virginia, including bank owned homes and short sales. Bank owned properties are often listed as “foreclosures” on home search sites and on the MLS.
Buying a Foreclosure Home in Northern Virginia
A true foreclosure is bought through an auction and must be purchased with 100% cash with no home inspection, and often a buyer will have to purchase the home without even seeing the inside of the property. Since all of this carries a great deal of risk, I don’t recommend buying a foreclosure at auction unless you’re an investor who is experienced, has lots of cash on hand, and has teams of contractors you work with on a regular basis who provide skilled, affordable labor.
Other Options Besides Foreclosures
For the casual investor or home buyer who wants to build some sweat equity, bank owned sales and short sales are the safer choice compared to buying a foreclosure home, and they both offer buyers a chance to have instant equity.
There just isn’t as much risk with these other types of sales, as you can do a home inspection to before closing. Keep in mind, however, that short sales and bank owned properties are typically As-Is sales, which means that although you can do an “information only” home inspection and cancel the contract if you’re not satisfied with the condition of the property, you can’t negotiate for repairs or monetary credits after the inspection.
Another advantage of buying bank owned properties and short sales is that both of these types of properties can be financed with regular home loans.
Read Part two of my two-part blog series on buying a foreclosure home in Northern Virginia. In the next post, we’ll discuss fixer-upper investments, estate sales, and how home search websites can be a bit confusing when it comes to foreclosure listings.
Are you considering buying a foreclosure home or bank owned home in Northern Virginia? Email me at DarrenRobertsonHomes@gmail.com for a list of the top deals in your preferred area!