Now that you know about the three types of foreclosures, read on to learn a few of the common mistakes to avoid when you're ready to make an offer.
First, don't get caught up in a bidding frenzy. Banks may under price their offering, hoping to generate multiple bids and sell quickly. Don't get over excited and carried away with the bidding.
Second, don't underestimate your repairs costs. View the property carefully and bring along your repair person. Factor in an additional 10 - 20 % for unexpected repairs.
Third, don't ignore the "comparables" for similar properties in the area. If there are an abundance of foreclosures in the neighborhood, be sure that you have the latest home prices to compare against, and keep your offer in line with those purchase prices.
Fourth, if you're buying for the short-term because you may relocate or upgrade in a few years, don't go house hunting in a neighborhood that is declining. These properties may continue to decline in value, meaning you may have to sell at a loss in the future. Protect your investment by knowing the neighborhoods in the area your considering buying into.
Finally, do secure your loan pre-approval, because you'll need to move quickly once you've found your ideal property. If you don't have your financing in order, you'll miss out on the best properties. With your experienced local agent as your field guide, your hunt should be successful!