Purchasing an Arizona foreclosure property does not come without risks. One of the biggest ones being that they are normally sold ‘as-is’. You are not going to get any warranties or inspections before buying. Any Realtor will tell you that you should never forgo an inspection before buying a home.
If you’re seriously considering going to an auction, do some homework before you go. Find out what the market value is for a comparable home in the area you want to buy in. Try to find out how long it has been vacant.
Even if you are able to drive by the property and see what it looks like outside there is no telling what condition the inside could be in. You have to remember that for whatever reason the previous owners were forced out of their home. They were probably pretty upset about that and could have taken out their frustration on the house since it no longer belongs to them and to the lender who is foreclosing on them.
They could have dumped things down the toilet to clog the pipes or possibly damage them. They probably left trash everywhere hoping no one could come in to clean it so insects and rodents could make it their new home until it sold. They may have sabotaged the electrical wiring or sprinkler system. Not knowing anything about what could have happened to this house makes it all the more dangerous to try to purchase it with no recourse.
Then you do happen to win the bid so you are required by law to have the house inspected before moving in. The utilities are no doubt turned off therefore you have to pay to have them turned in order for the inspector to complete his inspection. In some cases if the previous customer left an unpaid balance you may have to pay that also before they turn the service back on.
Did you know that there is a deposit to bid at an auction? The cost is $1000 and it is non-refundable. Also all sales are cash purchases, so if you are the winner of the bid you must come up with the balance of the bid by 5 pm the next day. If for some reason you are not able to fulfill this commitment you forfeit your deposit and the home is listed in the auction again.
Banks do not like people who don’t have cash when they go to those auctions. If you are trying to finance the home, they have to deal with your lender’s paperwork and they don’t like that. They just want to sell the property as quickly as possible. They have to deal with hundreds of foreclosures on a daily basis so the quicker they can turn them around the better for them.
Foreclosed homes are discounted 25% and most people think that is a good deal. But what they are forgetting is all the extra expenses that could be incurred with this type of purchase. You have to prepare for the worst and hope for the best when considering buying an Arizona foreclosure property.
Get information about the simple ways that you can get your dream home through AZ foreclosures now! You can find the Arizona foreclosure that will meet your needs and fit your budget fast!