Popular question in other cities: Is buying a foreclosure smart for a first-time home buyer?

Asked by Kim Glass, San Francisco, CA Wed Jul 18, 2012

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David Herren, Agent, Atlanta, GA
Thu Jul 19, 2012
Hi Kim,

Buying a foreclosure can be a very smart buy for a first time home buyer. Usually they are sold below market value, sometimes at a very deep discount, but sometime they are over priced. The best way to know if you are getting a deal is to work with a buyer's agent. Be sure to have the home professionally inspected, and if repairs are needed, get an estimate of the cost to complete them. Consider obtaining a loan that includes the repair costs, or negotiating the price based on the cost of repairs. Your buyer's agent will be able to guide you through the process.

Best,

Dave Herren
Best Atlanta Properties
404-424-4945
1 vote
Debbie Wright, Agent, Lawrenceville, GA
Thu Jul 19, 2012
The short answer is: it depends. There are pros and cons to it. A foreclosure could be a good deal if it is in decent shape, no major vandalism done to it, and the price is below market. I have seen some foreclosures that were in move-in ready condition, that would be great deals for a first time buyer, and others that looked like they would need thousands to be ready to occupy.

For any home, you need to have a good inspection done, but foreclosures particularly need one, since it has probably been vacant for some time, and there may be problems that are not visible with the electrical, plumbing or heating and air conditioning systems. Since the previoius owners were not able to make their mortgage payments, there may be some repairs that had not been made while they were there because of financial problems.

Visit my website at http://www.atlanta-foreclosure-list.com to find an updated list of foreclosures and other homes on the market.
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