So many individuals are thinking about buying foreclosure or short sale properties in hopes of making the most of their hard-earned dollars. Be sure to follow this top 10 list before you move forward:
- Have the money before you shop: Most owners of distressed properties cannot or will not accept contracts with a mortgage contingency clause. Having the loan in advance gives the buyer an advantage in negotiating.
- Be mentally prepared for delays, aggravations, and red tape: Buying a distressed property could be your worse real estate transaction ever. However, it could also be the best investment you ever made.
- No contingencies: This will usually cause the offer to be rejected.
- Flexibility as to the condition of the property: This is necessary as there could be components that need to be replaced, repaired or that are inoperable. Understand that with foreclosures and REOs there are no disclaimers regarding the property or the neighborhood.
- Be prepared to make an offer: The best chance of getting what you want and how you want it is when you are not competing with another offer. When you see it – BUY IT!
- Motivations rule the day: These need to be verbalized and evaluated. The motivation of finding the perfect home, at the lowest price with no hassles is all but impossible when it comes to distressed property purchases.
- Buying at the bottom of the market: The bottom of the market is not determined until months after it hits the bottom. This is not a realistic goal.
- Quick settlement: Many if not most distressed property sellers demand a quick settlement as they want to be relieved of the financial burden. A quick settlement is one that takes place within 30-days from the acceptance of the offer.
- Inspections: It is recommended that any buyer of distressed property seek the advice of a competent home inspector to determine repairs that need to be made and the associated costs.
- Examination of title: A title search by a competent attorney would be advisable to any client buying a distressed property.
Allow me to be your Real Estate Resource. For more information on foreclosures, short sales and other properties, please visit my website at: www.sheriwhite.com
Please feel free to share this information with your family, friends and coworkers.
Source: Frank Serio – CRS Course 111: Short Sales and Foreclosures: Protecting your clients’ interests: http://www.theserios.com/index.php