‘Bargain’ foreclosure may not be a great deal

The monthly cost of owning a home is more affordable now than in the past 15 years, and is less expensive than renting in numerous cities, according to The Wall Street Journal’s third-quarter survey.

However, some buyers may be swayed by the big bargain prices that foreclosures often offer. According to national housing statistics, foreclosures now make up about 30 percent of all sales but they may not a bargain at all.

Foreclosed homes are usually sold “as-is.” If the home you are targeting has have been left vacant for awhile, it may have significant maintenance and damage issues.

Housing experts recommend getting a home inspector to look at the property before submitting an offer-regardless of it being sold in “as-is” condition-so that buyers can know what they’re getting into and the potential price tag for any needed repairs. Vacant and improperly maintained homes may have problems like frozen pipes and water damage.

Real estate professionals also advise buyers of foreclosures to take into account any liens or judgments on the property, which they may inherit if they purchase the home.

In addition, closing costs may be more expensive when buying a foreclosed property since banks will not absorb some of the costs.