Warnings To Consider Before Purchasing An Arizona Foreclosure Property
Purchasing an Arizona foreclosure property does not come without risks. One of the biggest ones being that they are normally sold ‘as-is’. You are not going to get any warranties or inspections before buying. Any Realtor will tell you that you should never forgo an inspection before buying a home.
If you’re seriously considering going to an auction, do some homework before you go. Find out what the market value is for a comparable home in the area you want to buy in. Try to find out how long it has been vacant.
Buying something sight unseen can be very dangerous. Even though the house may look nice and kept up on the outside does not mean the inside is the same. The previous owners were kicked out of their home if you were in the same situation would you not be pretty upset with your lender. They were not sympathetic to their financial situation and so the house was put up for sale. Those people probably decided the best way to get back at the lender would be to devalue the house.
They could have destroyed all the sheet rock on the walls or removed everything not nailed down. Things like the stove, counter tops, carpets, air conditioning units or bathroom fixtures. These are the things you can see they destroyed but what about the things you can’t see like plumbing or electrical wiring. These are not easy things to replace and definitely not cheap ones either.
Then you do happen to win the bid so you are required by law to have the house inspected before moving in. The utilities are no doubt turned off therefore you have to pay to have them turned in order for the inspector to complete his inspection. In some cases if the previous customer left an unpaid balance you may have to pay that also before they turn the service back on.
Did you know that there is a deposit to bid at an auction? The cost is $1000 and it is non-refundable. Also all sales are cash purchases, so if you are the winner of the bid you must come up with the balance of the bid by 5 pm the next day. If for some reason you are not able to fulfill this commitment you forfeit your deposit and the home is listed in the auction again.
Banks are not going to be very accommodating if you are paying with a loan. There is a lot of paperwork involved when you are trying to finance your purchase. The banks want the people who have the money readily available now. They just want to unload the foreclosed properties fast.
Foreclosed homes are discounted 25% and most people think that is a good deal. But what they are forgetting is all the extra expenses that could be incurred with this type of purchase. You have to prepare for the worst and hope for the best when considering buying an Arizona foreclosure property.
Learn about the easy ways that you can find your perfect home through AZ foreclosures now! You can find the Arizona foreclosure that will meet your needs and fit your budget fast!
June 25, 2010 | Posted by Jackie Loew
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