Foreclosures have become a dirty word to some and a profit word to others. Here is what you need to know about foreclosures whether you are a buyer or a seller.

For Sellers:

Rule 1 – Stand Tall - Just because you are selling your home and your neighborhood has foreclosures in it, does not mean that you can not sell your home. A foreclosure has a different appeal than a home that is lived in or still has a sane owner. Foreclosures look different and feel different and thus are not for everyone.

Rule 2 – Look Your Best – Foreclosures are often in shambles and the maintenance crews that are paid to work on the properties really have no overseer working to make sure that the work is done to perfection like you would as the owner of the property. Manicure and perfect your property and you will make a quicker connection to a buyer than the foreclosure will.

Rule 3 – Price High – Don’t price your property based on a foreclosure price. Remain as a “not distressed sale” and you will win by getting your price.

For Buyers:

Rule 1 – Be Patient – Banks who own these properties don’t really care what your time frame is. It could be weeks before you hear that they have sold to someone else so, if time is of the essence for you, you don’t need to buy a foreclosure in most instances.

Rule 2 – Inspect and Inspect Again – It is critical that you understand what condition the property is in. Most people in foreclosure didn’t just get to foreclosure the month that they were kicked out. It is a result of not having money. So, most likely they did not maintain the property whether the problem was big or small. Although most banks will not do the work to get the house repaired, at least you will know whether or not you are getting such a great deal.

Rule 3 – Get A Warranty – Pay for your own home warranty at the time of the
purchase. This will allow you to at least budget for the unknown.
Rule 4 – Don’t Pay Attention – Many times buyers who plan to live in the home are shocked by the stories about the previous owners when they meet the neighbors. If you are not going to go to the neighbors first, ignore the stories.