When buying a home that has been foreclosed on, instead of negotiating with the homeowner, you will be dealing with the bank or lender directly. This makes the Real Estate transaction different because the lender is no longer in the background.
When a home has been foreclosed on, the lender has seized rights to the property from the previous owners who were unable to pay their mortgage. Many buyers think that this increases their chances of going at it alone, as it may be easier to negotiate with a desperate lender. Well, think again.
Buyer’s agents are familiar with the foreclosure process
One foreclosure sale is not likely to be the same as another. So even if you have purchased a foreclosure in the past, do not expect the process to go as smoothly as the next.
An experienced agent should be well versed in working with different banks and should be able to anticipate their unique processes. Dealing with a lender directly can be a little bit more finicky than dealing with the homeowner as they will have set deadlines and usually do not offer as much flexibility.
A buyer’s agent will protect your interests
The lender only has one goal in mind: to recover their losses. As they are not the home’s occupants, there is no sense of urgency to sell the home quick and move out. You will have less cards to play when it comes to negotiating.
In the midst of a foreclosure sale, it is often easy to overlook any issues to the home that may need to be addressed. Additionally, banks will often dish out lengthy contracts with legal verbiage that does not always act in the buyer’s favor. An experienced agent will be able to help the buyer navigate their way through these contracts and inspections, so nothing goes overlooked.
The inspection process is a bit different
Typically, when a homeowner is selling their home, they are aware of any repairs or updates that need to be made. In anticipation of a sale, these quirks are often fixed prior to a home inspection.
When a bank or lender assumes ownership of a home, they are not acquainted with these issues in the home. A buyer’s agent is experienced in working with various home inspectors and can more easily identify any problem areas that a lender may overlook.
Buyer’s agents know the market
Usually, buyers stray towards foreclosures because they think they can get a good deal. However, just because the deal is good doesn’t always mean the home is. That is where an agent’s market knowledge comes into play.
Agents are aware of similar stats in the area and can compare location, comparable sales, condition, and property value. Depending on what you are looking for in a home, there may be a better deal out there.