4 Reasons Why Its Important To Have A Buyers Agent When Purchasing A Foreclosure Property

Dated: 01/20/2020

Views: 135

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. 


Blog author image

Jennifer Burns

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....

Latest Blog Posts

DIY Yard Projects You Can Tackle While You Have Time On Your Hands

Spring has sprung in most of the country. With the stay at home order in place for at least the next few weeks what better way to use your time than to tackle some garden projects. Don't have a

Read More

Helping Our Hidden Neighbors During COVID19

During this unprecedented time of experiencing planet earth on lockdown, new opportunities arise to be of service to our neighbors.One creative way is to use the attached flyer to fill out with your

Read More

How To Work From Home During The Coronavirus Pandemic

Many of us will be working from home over the next few weeks and practicing social distancing due the highly contagious Coronavirus. We’ve all see the Facebook memes, joking that at 8pm people

Read More

Time To Learn How To Online Shop

What was already a vicious Spring Market with low inventory, things are about to get interesting!  Now, in the midst of the pandemic and self quarantine - we need to work smarter, not harder!!

Read More