So many buyers think the best deals out there are foreclosures and short sales, but they can actually cost MORE!
Here are just some of the additional costs you may incur with a bank/distressed sale:
Survey: Approximately 150.-300. (usually a seller cost)
No Tax pro-ration: (usually 105% of the last tax bill in this area, banks only will usually do 100%)
Usually no negotiation on repairs, so if you do your inspection and it is not satisfactory, you talk with your attorney regarding canceling the contract if it is within the contingency dates, but no one will give you back the 300. or so you may have spend on a home inspection.
Not closing on time can also cost you a Per Diem, as banks usually have this in their contract addendums. This is more of a risk now with underwriting and appraisals taking longer and daily changes in the banking industry.
Appliances: Banks usually say there is “no bill of sale on personal property”, so what you see when you write an offer may not be what you see before closing.
No disclosures: Since they have never lived in or in most cases, have never even seen the property, they are exempt from having to do the usual disclosures.
Deferred maintenance: When someone can no longer pay their mortgage, many times they also have not been able to properly keep up with maintaining their home.
Timing: Many times there is a very long wait to get a response on an offer, and it is usually worse with short sales than REO’s, which are properties that have already been foreclosed on. You could be risking closing on time to be able to take advantage of the first time home buyers credit, which expires 12/1/09.
These are just some things to keep in mind when considering your options. Foreclosures and distressed sales can be great opportunities for the right buyer who is not trying to closely watch their costs, who has a lot of time and patience, and the ability not to get too attached to or emotional about the property. Don't get me wrong, there are a lot of great deals out there to be had right now, but don't make the mistake of thinking that the only good deals are distressed sales. Sometimes, a truly motivated seller with equity in their home can also offer a wonderful buy with less cost, less waiting and less hassles!
It is a GREAT TIME TO BUY REAL ESTATE in McHenry County, Cook County and Lake Counties in Northern Illinois. There are fabulous homes for sale at great prices!
***especially for first time buyers, investors and move up buyers.*** Rates are great, too!
We are having a "HUGE sale" on our large inventory of VERY well priced HOMES!
To Search Homes For Sale, Please Contact Me Directly Or Feel Free To Search On My Website!
My Direct Number at the Office is 847.516.6760
If I can be of assistance to you, please do not hesitate to call or email me. It will be my pleasure! By the way, if you know of someone that could benefit from my high level of service, please call or email me with their name and daytime phone number and I will make sure to follow up and take great care of them. My business keeps growing from your referrals.
There are fabulous buys on the market....now is a GREAT time to buy real estate in IL, especially for MOVE UP Buyers, Waterfront Buyers, Vacation and Second Home Buyers, Investors and First Time Buyers!
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