The most obvious benefit of purchasing a foreclosed home is the potential for a great deal. You may be able to afford a home otherwise out of you budget. It is not just this simple though; there are opportunities for buying homes in different stages of foreclosure, all of which come with their pros and cons which will be discussed later. First we will consider the main advantages and disadvantages of buying a foreclosure.
When purchasing a foreclosed home, you can expect to save a great deal of money on the original price. Most properties are sold with around 30% or more reduced on the price so they can be a real bargain if you take the right steps. However, you should expect harsh competition at the auction if the offer is good, since foreclosure homes have a reputation of being a great deal and you can be sure you won't be the only one looking to buy the higher quality foreclosed homes.
The research has been done for you
Many lenders extensively research the properties they are selling, to ensure they're not potentially harming themselves financially. Therefore, you can cross reference your own research with that of the lender to be sure you haven