Author Topic: Newbie questions about buying a foreclosure condo  (Read 554 times)

plank

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Newbie questions about buying a foreclosure condo
« on: August 26, 2018, 02:24:14 PM »
I'm either about to do something great or something stupid.

There is a condo for sale near me for 40k.  This would be my personal home for my family.  Traditionally, these condos go for 80k-100k.  I know there is work to be done on it, but I don't know how much until we can see it.  In my head, since it's a condo, a lot of the typical major problems won't be present (no septic/roof problems)  Maybe I'm wrong about that, though.  It was built in 1986 and the condo company financials are solid.  It got put on the market today and I will be the first person to see it.  The realtor hasn't seen it yet.

What should I be looking for when doing the walkthrough?  Which questions should I be asking the realtor?  Should I absolutely get a home inspector?  What are some red flags to look for?

I don't mind cosmetic damage and don't mind spending 10-15k into getting it livable, but don't want to end up spending 25k, when I could have just gotten a similar condo all finished for the same price.

Sorry if these questions seem vague or my details are unhelpful.  I don't really know what I'm doing, but I need a place to live and I can afford this one.

I welcome any feedback and will answer any questions I can if that's needed.

Thanks for your help.  I really appreciate it.  Any advice you could give would be helping out a young family that could really use a win right now.

nurseart

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Re: Newbie questions about buying a foreclosure condo
« Reply #1 on: August 28, 2018, 12:37:29 PM »
YES you ABSOLUTELY need to get an inspection if you make an offer and go under contract.

For the walkthrough, see if the space would work for your needs. If there are stairs are they manageable? (my friend bought a four level home not thinking about the stairs and then had a kid... d'oh!) Can you hear neighbors? Is the location good for you? Is there the type of outdoor space that you need? Is there enough bedrooms and bathrooms? Is the layout ok? It is the inspector's job to find issues so don't worry too terribly much about that your job is seeing if space would work for you.

I'd also check about HOA fees.

I know it's exciting but try not to get to caught up in this particular property. Even if this one doesn't work out another one will and you will have gained valuable skills in looking at potential homes to buy.

ETA: I bought a house in foreclosure last year. It should work out in the end to be one of the best financial moves I've ever. It is worth having an attorney do the closing to make sure everything with the deed is ok.
« Last Edit: August 28, 2018, 12:39:18 PM by nurseart »

patchyfacialhair

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Re: Newbie questions about buying a foreclosure condo
« Reply #2 on: August 30, 2018, 09:41:54 AM »
With condos, a huge part of your life's enjoyment is dependent on the neighbor situation.

Are the people all around you (Above, Below, Sides)? Do you have some non-shared walls (that would be awesome)? What's the parking situation if that's important to you?

What's the demographics of the building? All quiet old people that your kids would be disturbing? Or a bunch of other kids where yours would fit in?

I think those factors are more important to consider rather than the condition of the property. A condo should be easy to fix up (paint is very cheap, cleaning supplies are too, and even flooring, appliances, and fixtures don't cost much even paying full retail price).