Thinking About Buying a Foreclosure? Here’s What You Need to Know.
Foreclosures can be a great way to save money on a home — but they’re not for everyone. Let’s keep it simple and break down the basics so you can see if it’s the right fit for you.
What’s a Foreclosure?
It’s a home the bank takes back when the owner can’t pay the mortgage. The bank then sells it, usually at a lower price, to get some of the money back.
Why Buy One?
The price. Foreclosed homes are often cheaper than others on the market. Banks want to sell fast, so you might score a deal.
How Much Cheaper?
On average, about 35% less than similar homes. That’s real savings — especially in a hot market.
Sounds Good. So What’s the Catch?
Foreclosures are sold as-is. That means no fixes, no upgrades — what you see is what you get. If you're handy or know someone who is, that could work in your favor.
What Can Go Wrong?
A few things to watch for:
Hidden damage (like leaks or mold)
Missing appliances
Repairs the home might need to meet code
Costly renovations — buyers often spend around $10,000 more in the first year compared to regular homes
And sometimes:
The last owners didn’t take care of the place
There could be tenants who haven’t moved out yet (rare, but possible)
Is It Worth It?
It depends. If you’re ready to roll up your sleeves (or have a solid team to help), it might be a great deal. Just make sure to:
Get a proper home inspection
Budget for repairs
Know your rights if someone’s still living there
Bottom Line
Foreclosures can be a smart buy — but they come with extra steps. If you’re new to buying or not into renovations, it might not be the best move. But if you’re up for a bit of work, it could pay off big.
Want help figuring it out? Let’s chat. We’ll help you explore your options and keep it super simple.