Buying a foreclosure can be a fortune or devastating experience. At the end of March 2008, I & a couple of my buyers closed one of these transactions. We were keeping our eyes on this particular property, until it got to a price were they were willing to make an offer.
I've always recommend inspections and enough time to do them, and here there was no exception; because, while the property had a great buying price it didn't mean it was a great house. My clients, at their option, waved the inspection. Fortunately for them, until now, they have only spent about $ 1,200.00 to make it habitable.
While this was not a devastating experience, it is extremely important that you as a buyer understand the disadvantages of buying a foreclosure. These institutional sellers want to sell their properties at standard market price with out the standard advantages. A private seller, most of the time, is willing to renegotiate the outcomes of the inspection and a few other items. With foreclosures, you even give up the right to complain to anybody for any minor or major wrong item with the property, and this is were the money spent in your inspections is well justified.
You should be willing to loose the cost of the inspection instead of loosing a more significant amount. If something doesnâ€™t make sense get questions answered. Realtors are not law practitioners, but if your question involves legal advice she / he should let you know to consult an attorney.