DON'T Buy a Foreclosed Home if You're a First Time Buyer!

If you're a first time buyer, buying a foreclosed home may be a bad idea. This week I share the hard facts about it.

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I'm Jackie Baker, a Realtor with Coldwell Banker Realty in Allendale NJ. I serve the Bergen County area and would love to help you with your next home purchase or sale. Don't live in NJ? I can connect you with an outstanding realtor in your area!

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[ashleyspitzer]

Sometimes you may not have a choice to buys a foreclosed home. These days you either got to have real good money or really rich to afford a decent place to live in.

[marketinggenius]

My first home was a foreclosure/bank owned and it was hands down the best decision I ever made. Bought many more since and has set me up financially superb.

[kraken]

Thanks for the information. I am a licensed plumber and I'm confident I could handle drywalling crack filling and some other minor repair tasks so a foreclosure may not be the worst thing for me so long as I avoid foundation problems, and other major expensive repairs.

[jamesbraun]

They need to show this as a commercial during the house flipping shows.

[darbirhian]

We live in Canada and I think you're based out of the USA?

We are in a unique situation I don't hear talked about too much. We rented our home for 1.5 years and the landlord foreclosed; luckily we had the means and desire to stay and we bought the home. The market was and still is absolutely bonkers. Thank god we had "first dibs" and didn't have to bid against anyone else or deal with any of that malarkey. We bought for less than the appraised value, and we bought it as our first and only residence with the intention to stay for the long-term. It's in really good shape, though we still paid for an inspection regardless. No major issues, but minor fixes.

[ralemc]

Keep in mind your maximum bid price. Keep in mind renovation cost. If you are in the market for a dollar home with todays interest rate you can be putting down 40000 dollars and still have around a 1000 month mortgage for 30 years. That 40000 is gone. Try to get a foreclosure for a bid of 110000 and have that 40000 build into the 110000 if possible. Keep in mind a mortgage of 1000 a month for 30 years will end up around 360000 dollars.

[lauriekepaa]

Thank you I’m actually trying to buy a foreclosed home that I’m living in currently

[stphinkle]

Things to expect when buying a foreclosed or auction homes:

* Don't expect designer showcase or newly remodeled condition. Sometimes these homes end up with dated fixtures, poor paint conditions, damage, or worse. A lot of times homes end up foreclosed because the previous owner was in financial trouble.

* The property may have liens on it from previous unpaid bills

* Don't expect to be able to inspect if you buy at auction.

* Budget for repairs, liens, code violations, etc.

* Don't expect banks and auction companies to pay for closing costs and other expenses.

* Some foreclosed and auction homes can have major damage such as foundation, structural damage, water damage, etc.

* Be weary of homes that have been abandoned for a long time.

[YOUR-WORD-IS-YOUR-BOND]

Most of the time, the first time buyers get the hand me down homes.. So what's the difference?

[allenmike]

getting a home for 25k and take a few years to fix un yes sign me up…. im not gonna pay on a house for 30 yrs on something thats over priced because they put new carpet i. and painted the walls then jacked it up to 400k .. think smart ppl.. buy a house full cash upfront. and never have a house payment

[ABokeh]

A lot of of these foreclosed homes are on a good size of property and the house is a piece of crap. What if you just knock down the home and build a new one on the property?

[normaondina]

Thank you for your honesty I most definitely agree with you

[Unknown-iork]

Thank you for the amazing info! First video I have watched from you and you earned yourself a subscriber!

[alexisaguilar-mendoza]

8:45 "unless you're handy" i absolutely agree with you there

[alexisaguilar-mendoza]

1. How do you know what is inside your brand new house's walls? What did they put outside, osb? Cardboard? Can't see that either.
2. When buying a used car, if i let the current owner replace the lights, ill get the cheapest lights in the world, how would that be different in a house.

[joaquimrodriguez]

I Bought , a foreclosure back in 97, the story behind that was the homeowner had a gambling problem, they lost I bought, as a first timer. My biggest mistake was not having them replace the roof. which ended up costing 10k in 22.

[daisyd]

If the bank renovated it would that be a good deal? We are looking at a home it’s listed by an agent and has been bank owned for a number of years now

[brigidasuquilanda]

You are full knowledge and thanks a lot

[GTLifeStyle]

What if your a first time buyer, but your using it as an investment property?

[thsone]

Wth?... foreclosed or not. Ppl should have the right to know wat they r buying. Such evil... no matter wat "they" try to get their $$ back no matter wat by tricks. Grrrr