If you’re thinking of buying a foreclosure in the beautiful state of Texas, you’re not alone!
Today, we are going to explore how to buy a foreclosed property and learn some tips that will make the process easier.
Should I Get A Loan or Pay In Cash?
There is nothing wrong with getting a loan to buy a foreclosed home, but keep in mind that many real estate investors are going to be bidding with cash. As you probably already know, cash is king when it comes to real estate.
Paying with cash will give you a larger advantage, especially when it comes to bidding against others. So if possible, pay with cash.
If you are going to be using a loan to purchase a foreclosure, make sure that you get qualified before the day of the sale.
While loans are not as effective as cash, they can help you secure the property if you already have a loan offer in place.
Do I Need A Home Inspector?
Just like a normal home purchase, it is a good idea to hire a home inspector when buying a foreclosure in Texas. An inspector can take a professional look at the property and let you know what you’re getting into.
Instead of waiting for his or her report, however, make sure you show up on the day of the inspection so you can see first-hand the condition of the home. This will help you avoid a costly mistake, like buying a home that has more damage than it is worth.
Understand Foreclosed Homes Are Sold As-Is
While you should always have a professional inspect the home, that does not mean there will be any guarantees on the property. Most of the time, foreclosed homes are sold As-Is.
This means that whatever is wrong with the property will be passed on to you. You will be the person who has to fix any issues that the home has.
Research County Records
Before you go out and place a bid on a foreclosed home, it is a wise move to do some research.
A great place to find out more about a home is by checking county records. In most counties in the state of Texas, you will find information on home value, back taxes, liens, or any mortgages that may have been taken out.
Keep in mind, that most of the time any taxes owed on the home will need to be paid at time of purchase. In some cases, you may even be responsible for any liens on the property.
Should I Bid High or Low?
Getting a great deal when buying a foreclosure in Texas is very exciting. But you will need to keep in mind that foreclosed properties normally sell fast.
Because of this, you will need to place a reasonable bid on the home. Bidding too low is a sure way to allow the property to slip through your fingers.
Set A Bid Limit
As we have learned above, you will need to outbid your competition while still trying to get a good deal. But you should have a limit to how much you are willing to spend.
If you get in a bidding war with a seasoned real estate investor, you may wind up paying more than you should. Instead of going broke and bidding all your money, set a bid limit.
Don’t Limit Yourself
When searching for a foreclosure, don’t limit yourself to just a few homes and don’t settle for the first one that comes around.
Shop around and find one that is just right for you! Never settle for a home that you really don’t love because you can regret it in the future.
Verify The Day of The Sale
A few days before a foreclosure is supposed to go up for sale, check with the property’s trustee. Often times, for various reasons, sale dates get change or even canceled.
If the day has been moved to another time and you know about it, this could give you an advantage over the competition. So be diligent and always keep an eye on what is going on.
Do I Really Need A Real Estate Agent?
Sure you can buy a foreclosed home without a real estate agent, but it is not recommended. Unless you are a seasoned real estate investor, not having a real estate agent can put you at a huge disadvantage!
Also, agents have great knowledge about the local area and can help you weed out those homes that are simply not worth it.
These tips will help guide you in the right direction when trying to buy a foreclosure in Texas.
Remember to bring cash to the table when possible, don’t forget to set a bidding limit, and working with a real estate agent is a great way to help make the process of buying a foreclosure much easier!