How to Buy Repossessed Real Estate
A repossessed property is a property taken from an owner by the lender, usually because the owner could no longer make payments on the property. These properties usually sell for 10 to 20 percent less than other properties, so you can get more real estate for the money. In exchange for this bargain, you must do some extra work and take on some additional risk.
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Instructions
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Find repossessed real estate available for sale. Check local newspapers frequently for advertisements for this property. You can also call local lenders to ask whether they have repossessed property and how you can get information on the properties. A list of these properties is generally posted in the county courthouse.
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Use a website to get real estate listings for repossessed real estate. Many websites, such as Bank Foreclosures Sale and Foreclosure.com, provide listings for repossessed real estate across the country. Most of these websites charge a fee to view the full listings.
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Get a real estate agent. Although you won't be buying a home through a real estate agency, you should get a real estate agent to act on your behalf, advise you on the worth of properties and do the bidding in repossessed real estate auctions.
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Do a title search on any property you are considering. Repossessed real estate often have liens against them or back taxes due.
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Hire a professional inspector to do a thorough inspection of the property. Repossessed homes are typically not as well-maintained as other properties. The inspector will alert you to any major problems you'll have to fix after buying the property. Be sure to get an estimate of how much the repairs will cost.
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Work with the home inspector and your real estate agent to come up with a maximum amount you would be willing to pay for the property.
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Start the bidding low. There may be a lot of competition for the property, but bargains are not uncommon with repossessed real estate, so make your first offer low.
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Tips & Warnings
Prepare for a real estate auction and find out the rules in advance. Many repossessed properties are sold at auction. Often you'll need a certified check for the deposit on the day of the auction. You'll have to be pre-qualified for a loan by the day of the auction.
