Buyer Beware

We all love saving money and nothing can motive people to part with their money more quickly than the phrase, "Clearance Sale." But sometimes when the price seems to good to be true, it really is. There is a lot of wisdom in the adage Buyer Beware. This is especially true right now when it comes to the staggering amount of homes at bargain basement prices via foreclosure. While buying a home in foreclosure can often save you a lot of money, it can also result in big headaches if you are not careful. Here are some things to keep in mind when you are considering purchasing a home in foreclosure.

It used to be common practice for a bank to allow a buyer to put a contingency in their offer based on the outcome of a home inspection. Unfortunately, that is not always the case now. Some banks , in order to get this houses sold, have removed the inspection stipulation. You make an offer and it is "as-is." While this may seem like a small concession, realize the things a home inspection would reveal. Besides the electrical and mechanical problems, there is an even more dangerous evil lurking in many homes. One of the most common is mold. In many foreclosed homes there is no one there to notice a small leak or a little moisture. Mold can grow in hot and humid areas as well as places that are dry and arid like Arizona. It may be hidden or growing up the wall; either way, all infested drywall MUST be replaced. The repair expense can add up very quickly.

Another problem with empty homes is vandalism. With no one around to protect them, empty homes are sitting targets. Vandals can break in and cause untold amounts of destruction. Many homes have been cannibalized. Copper pipes, fancy light fixtures, and even kitchen cabinets can be ripped out and taken. Sometimes angry homeowners take everything not nailed down. There have been homes where the previous owners took every built in appliance and even the toilet (not to mention the light bulbs and the mini-blinds) with them when they left - and traded the house for good measure. Again, all of this would have to be replaced or repaired before the home could be lived in.

These are just a few of the things you can run into when you get into buying a foreclosed home. This does not mean you should run away from these homes. It means you have to be aware of the potential pitfalls of buying foreclosures. Just remember know what you are getting into. Don't be afraid to insist on a home inspection. Knowing how much repair will need to go into a home will make the difference between your new home being a bargain and being a money pit.

If you need help finding a home that makes smart money sense without all the potential pitfalls, contact Sandy's Team at (225) 677-SOLD or email info@sandyco.com We are here it help you in East Baton Rouge, Livingston Parish, and Ascension Parish.