Risk and reward when buying foreclosed houses
For people looking for a new home, the increase in foreclosures could mean a good deal.
Real estate broker Bob McCorkle said if you’re willing to take on the clean-up, the best deals can be found at courthouse foreclosure auctions.
However, before you buy, make sure you know what you could be getting yourself into as foreclosed homes can have serious problems. At the auctions you buy the property as is.
“You have no opportunity to inspect the house, see it in advance, and no ramifications if you discover something is wrong. You pretty much buy whatever it is,” McCorkle explained.
Houses often go into foreclosure because the previous owner was unable to sell it, which sometimes that can mean structure problems or damages within the home.
While you might be able to get a deal, buying the property at auction can also be risky.