“Get Rich Buying Real Estate Foreclosures” is an all-too-familiar headline seen these days by home buyers and first time investors that want to take opportunity of today’s foreclosure market. But despite what all these eye-catching get-rich-quick headlines tell you, it’s not that easy. As an Investopedia article truthfully points out, “Investing in foreclosures is a strategy that requires a level of sophistication and diligence that is far beyond what most people realize.
One of the biggest risks of buying foreclosures at auction is the fact that you don’t know what you’re buying. Sure, you can drive by the house and get a sense of how well the owners have kept the property, but you can’t tour the home nor request a proper inspection prior to your purchase.