What Should I Know About Making an Offer on a Foreclosure
- By Jim Blackburn
- on
- 100 first time home buyer FAQs
1. Foreclosures Are Often Sold As-Is—So Budget for Repairs
Yes, foreclosed homes are often priced below market value. But that discount comes with a trade-off: the property is typically sold as-is, meaning:
- No repairs from the seller
- Potential hidden damage
- No guarantees about condition
You’ll be responsible for any and all repairs, from plumbing issues to structural concerns. Be sure to factor this into your total cost—not just your offer.
2. The Process Can Be Slower and More Complex
Unlike a traditional home sale, where you’re negotiating with a seller, foreclosures are usually handled by a bank or government agency. That means:
- More paperwork
- Delays in response times
- A longer closing timeline
In short, you’ll need patience and persistence. And it helps to have an experienced real estate agent (and lender) who knows how to navigate the process.
3. Do Your Due Diligence Before Making the Offer
With foreclosures, it’s extra important to:
- Get a home inspection (even if it’s “as-is”)
- Run a title search to check for liens or legal complications
- Understand the condition and costs before you commit
You may not be able to negotiate repairs, but you can still walk away if something major shows up during your research—so do that research thoroughly.
Ready to Make an Offer on a Foreclosure With Confidence?
Download our free “First-Time Buyer Game Plan” eBook — includes a foreclosure offer checklist and repair budget template
Chat live now to ask about financing, inspections, or local foreclosure deals
Schedule a call with a Stairway Mortgage advisor to learn how to safely structure your offer
At Stairway Mortgage, we help you turn distressed properties into wise investments—
because the right deal is worth the wait, not the risk.
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