The number one reason to buy a foreclosure is the chance to save money. Banks are anxious to get foreclosures off their books, so they will often time sell at a discounted price. This is usually the case, and most people realize that saving money is a big benefit. But before you buy a foreclosure simply because you can save money, consider that time may not be on your side. What does this mean? Most foreclosures need some work in order to be lived in. Are you willing to put the time into making the necessary upgrades and repairs?
How much work do foreclosures need? This is not an easy question to address. Some foreclosures are in good shape, and can be moved into without doing much work. But the majority of them need some help. As a buyer, you want to find a foreclosure that is not going to take up too much of your time; unless you do not mind the work, of course.
You can definitely save money when buying a foreclosure. But if you think you will be able to move right in you may be mistaken. Before you buy a foreclosure, or even contact the bank about moving forward, get a better idea of how much money and time you will need to sink into the home in order to bring it up to par. This way you know what you will be up against once the home is yours.