What You Need to Know About Buying a Richmond Foreclosure
One of the best ways to find a good deal in the Richmond real estate market is in buying a Richmond foreclosure. While the Richmond market had a number of foreclosures available not too long ago, they are not as prevalent in today’s market.
However, with just a little bit of looking you are sure to find an attractive Richmond foreclosure opportunity in your area.
What is a Richmond Foreclosure?
A Richmond house is foreclosed on when the buyer is unable to continue making the mortgage payments. The bank then has to take back possession of the house.
This is bad news for the bank because they are in the financial industry and not the real estate profession. They then need to sell the house quickly to reduce the impact that it makes on their bottom line.
Typically banks try to sell the Richmond home for what the previous owner still owed on the house plus any fess that will be involved in the transaction. While the average price is 5% below market value, there are some good deals to be found in the foreclosure market.
What You Need to Know
Foreclosed Richmond homes are sold “as is.” That means that you are welcome to do an inspection on the house before you buy it, but the bank is not going to make any of the repairs before selling. You will be buying the house exactly as you see it.
Banks also do not typically know all of the details that a homeowner would know about a house, so you will not receive the typical insight about potential problems and past work that was completed on it. That means it is more important than ever to complete your due diligence when buying a foreclosure.
Some banks will clear any liens that are on the property and others will not. This means it is well worth the money you will spend to have a professional title search completed. You will want to know about any potential problems before you have closed and the problem becomes yours.
You will also want to find out how long the Richmond house has been sitting empty. Make sure the utilities were properly shut off and weatherized. Otherwise, you might find out that the house had pipes that had burst and caused water damage while sitting vacant.
When you are having the inspection completed request to have all of the utilities turned back on for the day. You want to make sure that there are no leaking pipes or problem with the electrical.
It is not uncommon for empty Richmond houses to fall victim to vandalism. When copper prices were higher thieves would steal copper pipes from foreclosed homes. As you never know what could have taken place in the house, you will want to cover all of your bases.
Keep in mind that banks want to make the most that they can out of properties. You will also want to be prepared for the long haul; the process can take much longer than buying from a homeowner.