Purchasing a home undergoing a foreclosure is a risk. Like all risks, some people who take the chance end up losing money and others end up finding a great value. While entering this market will always be a gamble, there are five essential steps to take when purchasing a foreclosed home in Illinois to help increase the chances that you come out of the transaction on top.
1. Secure the Right Real Estate Agent
Before you begin the search for a foreclosed home, it is important to note that not all real estate agents are willing to or experienced enough to work in this market. It is essential to secure an agent that is not only willing to work in this market, but has worked it before, and knows the essential steps to take from viewing to close to help ensure you the fairest deal in the transaction.
2. Get Pre-Approved
If you are hoping to purchase this home through financing, it is essential that you get pre-approved before you start the process of looking. Foreclosures tend to sell fast, and many are auctioned off, making cash payments the best option for purchase if you have the means. If you don’t have these means, it is essential to consider that many competitors in the market are likely looking to make a cash offer, and therefore, you must ensure that all financing options are in place and ready to go quickly so that you can compete.
3. Research the Market
The offer you make on a foreclosure is essential. In most of these cases, you are purchasing the home from the bank, and they are looking to make the sell quickly so that they are no longer sitting on the home. In most cases, they simply want back what is owed on it. With this in mind, you do not want to shoot too high and overpay for a house that will still likely need a significant amount of work. With that said, the offer you make must still be fair in comparison with other homes in the area. While the bank is looking to offload the home, there tends to be a lot of competition in the foreclosure market, and if you come in too low, the bank will likely take someone else’s offer instead.
4. Account for Maintenance
The majority of foreclosed on homes in Illinois sell “as-is.” This means the seller will not likely pay for any issues or costs that show up during inspection. When making an offer, it is important to consider how much money you are ready to pay out of pocket to fix up the home and account for that in the offer you give. In addition, it is in your best interest to build relations with
If you are looking to purchase a foreclosed home, and you want to ensure that the sale runs as smoothly and fairly as possible, it is essential to have an experienced Chicago real estate attorney on your side. Gurney Law Group is happy to help guide you through the process. Contact us today to get started working with a real estate attorney in Chicago.