Tips on Buying a Virginia Beach or Hampton Roads Foreclosure Home
Is a Virginia Beach, Chesapeake, Norfolk, Suffolk, or Hampton Roads foreclosure home in your real estate future?
While the number of foreclosure homes in Virginia Beach and Hampton Roads will climb, finding the perfect deal on that bank owned home can be a challenge.
foreclosure homes
Be prepared to conduct your due diligence with the help of your REALTOR(R) on many foreclosure homes to narrow down that potential good deal.
The good foreclosure homes in Virginia Beach and Hampton Roads go fast so having your “ducks in a row” becomes extremely important. You must be ready to write a purchase contract (have financing preapproved) when that time arises or risk the real estate being absorbed by another buyer.
Important foreclosure home tips:
1. Be realistic. While discounts are expected on foreclosure homes do not think that a 50-60% discount will occur especially in desirable real estate neighborhoods. Remember, banks think they have the property properly priced so negotiation is standard procedure.
2. Under priced properties may get multiple offers. A best and final offer may be requested. Do not let emotion cause you to pay more or be caught up in a bidding war. Consider foreclosure home properties that have lingered on the Virginia Beach and Hampton Roads market for several months or more. Banks may be receptive to unloading these foreclosure homes and accept your purchase offer.
3. Consider what repairs are necessary. Then have your REALTOR(R) assist you in establishing the new potential value of the home after repairs are completed. If the price comes in under other comparables in that real estate neighborhood then you may have that good deal. If you are a “handy person”, then build instant sweat equity by doing repairs yourself. Leave the safety stuff to licensed professionals.
4. Back to repairs: Many Virginia Beach and Hampton Roads foreclosure homes may be marketed “AS IS” (Most will). This means negotiating any repairs may be slim to none. However, most will have a “cap” negotiated in the purchase offer for termite and moisture repairs – this is good.
Very Important – strive for a home inspection contingency in your purchase offer so you are protected against unexpected repairs/damage that might not be visually apparent. A good home inspector will provide an extensive report of the foreclosure home condition. You need this to ensure that unexpected repairs are not 6 months down the road. Also, if nothing else, a home inspection lets you know of safety concerns (electrical, etc) that is a must.
5. What is the neighborhood like where the foreclosure home is located? Do the neighbors show pride of ownership with their yards and home? Are there many foreclosure homes in the neighborhood? Are home values declining significantly? If so this could affect value. Let your REALTOR(R) run the statistics for you.
6. Location, Location, Location. Find a foreclosure home in a good school district with other amenities nearby. This will help preserve value in the future.
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