Are You Missing an Opportunity to Buy a Great Home? When to Research Foreclosures
Recently, the average rate for a 30-year, fixed mortgage fell below 4% for the first time in three years, encouraging potential home buyers who are searching for a new home. Not only are many properties selling quickly — almost half sold in less than one month — but many buyers are also looking for ways to save on their home purchases. Some people examine listings of homes in foreclosure, looking to buy a new home for a few thousand dollars.
Extensive listings of homes in foreclosure can often be found on the internet. About nine out of 10 potential home buyers report looking online for listings. Most end up buying a home that is about 2,000 square feet, built in the last 25 years, with three bedrooms and two bathrooms. If they finance the cost of purchase, they typically put down a 10% down payment and seek funding for the rest.
Many potential home buyers seek out the advice of local realtors to help with the process of buying new homes for sale, townhomes, or even homes in foreclosure. Foreclosed properties often have unpaid taxes or liens: if home buyers pay the back taxes or other outstanding bills, they can get themselves a property for considerably less money than it would take to buy a new home.
Most home buyers are looking for newer appliances, citing lower operating costs, and about eight out of 10 report that they would buy a smaller house as long as it is in a good neighborhood. Many home buyers attend a home buyers workshop, small classes that are intended to educate potential home owners about mortgages, budgeting, home repair, and even how to find homes in foreclosure.
In a seller’s market, home buyers have to act fast if they want to secure the home of their dreams. Properties can sell so quickly, and finding the perfect home can be a competitive endeavor. Beautiful properties with newer appliances that are located in excellent neighborhoods can be easy to find but difficult to purchase, due to a high number of applicants who are all searching for the same qualities in a new home.