You're buying a foreclosure property, do you need a buyers agent? In a home foreclosure, the seller is the Bank or mortgage lender. The lender in this transaction is trying to recover as much
4 Reasons Why Its Important To Have A Buyers Agent When Purchasing A Foreclosure Property
You're buying a foreclosure property, do you need a buyers agent? In a home foreclosure, the seller is the Bank or mortgage lender. The lender in this transaction is trying to recover as much money as they can for their losses which were due to the previous owner not paying their mortgage. In a typical transaction, a buyer and seller would normally negotiate the sale but in a foreclosure transaction, the buyer's agent is negotiating with the bank/lender. If you've never purchased a foreclosure before I have 4 reasons why it's important to have a buyers agent when purchasing a Foreclosure property.
1. A buyers agent knows the market. You'll want to know the value of the home when its all fixed up and see how it compares to other homes in the neighborhood. It may sound like a really good deal until you find that the home needs more work than the home is worth after all of the repairs. Knowing the market and the types of renovations buyers are looking for in a particular area is important and a buyers agent will be well skilled in this.
2. The inspection process and what is expected. Buyers agents have experience working with many inspectors which will help identify problems with a home and help identify some rough cost on fixing certain items. The bank/lenders do not have any idea about the house nor do they have about any issues it might have. The buyer's agent might ask the bank to fix some of the problems where an average buyer will not realize they can ask and a bank/lender won't likely volunteer the information.
3. The buyer's agent always works for his/her client's best interest. When purchasing a foreclosure, the bank works for its best interest in recouping as much money back for the sale of the property and is not working for you the buyer. A buyers agent will navigate the process of purchasing the foreclosure for the buyer and help make it as smooth of a process as a typical sale. Banks often have a set of rules and insist on certain contracts and conditions that are in the best interest of the bank. It's in the buyers best interest to have a buyers agent working for them and their best interest.
4. The buyer's agent knows the foreclosure process. Having a buyers agent that is well versed in the foreclosure process is very important. The buyer's agent will be negotiating with the bank instead of an individual which is very different. The buyer's agent is going to know the process and can predict the bank's need to make this process smooth. No two foreclosures are the same and each lender has its procedure in which a buyers agent can help navigate the process to help relieve any stress.
Jennifer was born and raised in Maryland and for the last 21 years has resided in Middletown, MD. Upon finishing her studies at the University of Maryland University College with a Bachelors degree in....